The Manufacturing Incentives (R&D Tax Credit) benefit is a federal program designed for companies that perform manufacturing in the U.S. This program is listed under Section 41 of the IRC (Internal Revenue Code) The Manufacturing Incentives benefit provides an avenue to receive ‘tax money’ back from prior years while also reducing current taxable income on a dollar-for-dollar basis. Targeted industries include Manufacturing, Engineering, Software, and Chemical & Pharmaceutical companies.
The National R&D Tax Credit average is over $25,000 per $1,000,000 in total company payroll
R&D benefits are available for companies that are involved in:
- Developing and improving quality and cost efficient solutions and processes
- Quality assurance and testing
- Engineering and design
- Prototyping or modeling
- Process improvement resulting in better productivity and turn around cycle
- Specialized assembly processes using technology
- Developing tooling applications and solutions
- Product development and improvement
- A U.S. firm that:
- Has at least $500,000 in annual payroll
- AND, has paid Federal taxes within the last 3 years, or plan to in the current year.