R&D Tax Incentives For

Manufacturing Industries

Within the manufacturing realm, there are many businesses performing qualified activities and incurring qualified expenses on a day-to-day basis. Many of these businesses are unaware of the federal and state incentives available. Laboratories or scientists are not required to claim the incentives. A broad range of activities qualify the business for incentives. The activities can be related to the manufacturing process or product development. Engineers, designers, machinists, skilled operators and technologists, and tool and die makers are among the many individuals performing activities that meet the requirements for the incentives.

Manufacturing industries claiming research and development incentives include, but are not limited to, aerospace, automotive, automation, custom equipment, electronics, firearms, food and consumer goods, furniture, injection molding, life sciences and pharmaceutical, medical equipment, metals, oil and gas, and tool and die. If you are operating in one of these industries, you should evaluate the R&D credit. TTG will help evaluate your activities and expenses to help you take full advantage of the incentives available.

Qualifying Activities Include:

  • Creating new or improved product concepts
  • Developing tooling, jigs, or fixtures
  • Developing tools or molds
  • Modeling and testing using computer aided design
  • Testing samples or prototypes
  • Developing equipment designs
  • Automating processes through the design of equipment or system
  • Evaluating and developing new ways to perform previously manual tasks
  • Creating one-of-a-kind equipment to perform unique tasks automatically with or without an operator
  • Designing components, fixtures, gages

Production Processes Development or Improvement:

  • Researching robotics to be utilized in custom equipment
  • Streamlining processes to reduce scrap or improve cycle time
  • Improving manufacturing capabilities or processes
  • Improving product or process quality through the manufacturing process
  • Analyzing material or product flow and improving the design or process as a result
  • Developing new or improved processes to produce components, parts, or products
Case Study #1
  • Sub-Industry: Custom Automation
  • Revenue Range: $3,000,000 to $10,000,000
  • Annual Federal Qualified Expenses: $2,000,000
  • Annual Federal Credit: $160,000
Case Study #2
  • Sub-Industry: Injection Molding
  • Revenue Range: $50,000,000 to $100,000,000
  • Annual Federal Qualified Expenses: $6,000,000
  • Annual Federal Credit: $350,000

Estimate your Credit

Take a moment to complete the form below and allow us to estimate the amount of credits your company may be entitled to.