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Research and Development Industries


Many companies are unaware that their day-to-day operations could qualify for a dollar-for-dollar reduction of their income tax liability. Indeed, the R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10 percent of annual R&D costs for federal purposes and much more when state credits are factored in.

If your company attempts to create products that are lighter, faster, and less expensive or more durable, reliable, or precise, the R&D tax credit adds up to money you can reinvest in your business rather than pay out to the IRS or state governments. R&D credit eligibility is also much broader than many companies realize, applying to not only the development of products, but also activities and operations, such as new manufacturing processes, environmental improvements, software development, and quality enhancements.

Companies in many different industries can qualify for the R&D tax credit for activities they perform. These include but not limited to:


Manufacturing and Consumer Products

  • Exploring new design concepts and defining specifications
  • Engineering and designing new products and processes
  • Improving the design of existing products
  • Developing manufacturing plans
  • Designing, modeling, simulating, and analyzing new or improved products or processes
  • Developing special tooling and equipment used in the manufacturing process
  • Designing, building, and testing prototypes
  • Testing the adequacy of a new or improved design
  • Development of new software applications to use internally, or to interact with customers and/or vendors
  • Designing Intranet and Internet software that responds to scale and complexity challenges

Technology

  • Developing code for new software architecture or algorithms
  • Developing functional enhancements and new capabilities for existing applications, designed to create a competitive advantage
  • Developing intranet and Internet software in which scale and complexity present technological challenges
  • Developing flexible, high-quality, and scalable rule engines to manage and automate complex business structures and models
  • Developing software to better manage customer relationships through improved collection, storage, and analysis techniques
  • Developing specialized technologies, such as artificial intelligence or voice recognition applications
  • Developing interactive software to support the delivery of multimedia entertainment, such as streaming music or video or Internet video games
  • Testing the adequacy of a new or improved design
  • Development of new software applications to use internally, or to interact with customers and/or vendors

Construction/Architecture

  • Development of new plant processes or the expansion /optimization of existing plant operations
  • Development of unique, energy-efficient features
  • Development of unique processes or methods for installing energy-efficient systems
  • Development of innovative wastewater technologies
  • Design of unique water treatment plants to optimize plant capacity or efficiency
  • Development of innovative designs for bridges and roadway structures
  • Design of innovative sanitary sewer systems for new residential communities
  • Design of bridges and highways to meet specific structural and drainage requirements
  • Design of pavement, roadways, and streets and their related infrastructure
  • Design of foundations and earthwork for site conditions
  • Design of renewable energy infrastructure
  • Development of new or improved construction techniques
  • Development of new software applications to use internally, or to interact with customers and/or vendors
  • Intranet and Internet software in which scale and complexity present technological

Healthcare

  • Functional enhancements and new capabilities for existing applications, designed to create a competitive advantage
  • Intranet and Internet software in which scale and complexity present technological challenges
  • Flexible, high-quality, and scalable rule engines to manage and automate complex business structures and models
  • Software to better manage customer relationships through improved collection, storage, and analysis techniques
  • Unit, integration, functional, and performance testing
  • Developing, testing, and refining software source code for firmware
  • Developing new medical products, devices, equipment, or technology as well as next-generation products and product improvements
  • Designing, developing, and testing prototypes for new product validation
  • Developing new or improved pharmaceuticals, devices, or diagnostics
  • Developing or improving drug formulations to reduce side effects or dosage
  • Improving shelf life or product stability

Professional Services

  • Designing and developing new or improved technologies
  • Analyzing and implementing new materials and technologies
  • Developing new and innovative designs for structures
  • Designing for and analyzing structural performance
  • Designing and developing new or improved systems, materials, or products
  • Designing and developing new or improved machines, equipment, or tooling
  • Computer-aided design (CAD) and building information modeling (BIM) activities
  • Performing scientific calculations to determine the physical properties of materials in various environments
  • Evaluating alternative subcomponents, methods, and materials for use in designs
  • Designing and developing new and innovative LEED, energy-efficient, or green systems and structures
  • Designing and developing new or improved infrastructure projects, such as bridges, dams, subsurface tunnels, and rail systems
  • Designing and developing new or improved wastewater treatment facilities, pump stations, or other water supply facilities
  • Designing and developing new or improved electrical, lighting, alarm, communication, and control systems
  • Designing and developing new or improved HVAC, building envelope systems, and mechanical systems
  • Analyzing soil and subterranean conditions, drainage design, foundation design, and other related design and development efforts
  • Modeling and simulating new or improved designs for testing and evaluation purposes

Wineries/Vineyards/Distilleries

  • Developing new or improved fermentation and distillation processes
  • Designing custom equipment used in manufacturing
  • Developing or implementing automated processes
  • Developing and implementing new irrigation systems
  • Developing new or improved bottling and packaging processes
  • Developing filtration or straining methodologies
  • Designing and developing improved fermentation or bottling equipment
  • Developing new or improved product formulations
  • Developing new or improved preservative chemicals
  • Testing new or improved products for consistency and shelf life
  • Developing new or improved prototype batches
  • Investing in green technology used in manufacturing
  • Development of new software applications to use internally, or to interact with customers and/or vendors
  • Intranet and Internet software in which scale and complexity present technological