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Research and Development Tax Incentives for the Apparel and Textiles Industry

Many companies in the apparel industry are unaware that they may be eligible for government-sponsored research and development (R&D) tax incentives, partly because they often have their products manufactured overseas. However, these same companies often have technical design groups, sample makers, pattern makers, and sample testers operating here in the U.S. Manufacturing your products in Europe or Asia does not diminish the fact that your domestic design and development activities may make you eligible for significant federal, and possibly state, R&D tax credits.

In the apparel and textiles industry, R&D activities are evidenced in the design and development of new garments, shoes, accessories, textiles/fabrics, chemical and topical treatments, and embroidery techniques. Apparel companies at any stage in the development chain can have qualifying activities, from the textile mills, to the design houses, to the manufacturing plants. As not all qualifying R&D activities take place in traditional R&D departments, our apparel industry specialists can help identify those activities in your company that qualify.

If your company operates in the apparel, shoe, or textile industries, there is a strong chance that you would benefit from an R&D tax credit study. Let alliantgroup’s apparel and textiles experts help you claim the credits that you deserve.

Examples of Apparel and Textiles Innovations Eligible for R&D Tax Incentives Include the Following:

  • Designing new garments and apparel
  • Designing new shoe designs
  • Designing innovative shoe fit and comfort techniques
  • Generating prototypes and fit samples of new products for testing and validation
  • Developing new woven, knit, or non-woven textiles
  • Developing new or improved chemical or topical treatments
  • Developing new or improved manufacturing processes
  • Design and development of scaled up manufacturing processes

alliantgroup’s Apparel and Textiles Industry Specialization Team

In order to better serve apparel, shoe, and textile industries, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that comprise the apparel industry. alliantgroup’s Apparel Industry Specialization Team employs several individuals who have educational backgrounds and hands-on experience within the apparel disciplines.

ManufacturingManufacturing R&D Tax Credit Whitepaper

Download our free Manufacturing R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.

Download alliantgroup's Manufacturing R&D Whitepaper
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