Case Study: R&D Tax Credit for Precast Concrete Industry

R&D Tax Credit

By
Deborah Roth, CPA
on
August 4, 2023

The precast concrete industry is known for its involvement in innovative research and development endeavors. The primary goal is to create advanced concrete products and improve fabrication processes, ultimately leading to quicker and more cost-effective construction of both infrastructure and commercial properties. The industry is committed to devising transportable concrete elements and systems that can be manufactured at the factory and then easily transported to construction sites. This approach minimizes excavation work, eliminates the need for on-site concrete forms, and streamlines the construction process.

Opportunities in Precast Concrete Manufacturing

In the pursuit of these goals, various activities within the precast concrete manufacturing sphere offer opportunities to claim R&D tax credits. Some of the key activities that present such opportunities include:

1. Innovative Culvert Design

Companies engage in the design and development of concrete water culverts made up of transportable and easy-to-assemble concrete components. This innovative approach not only improves the efficiency of culvert construction but also opens avenues for R&D tax credits.

2. Complex Component Production

The industry focuses on designing and developing intricate concrete components that can be produced in large quantities on a consistent basis. The complexity of these components contributes to the research aspect and qualifies for potential R&D tax benefits.

3. Alternative Formulations

Research efforts are directed toward creating and testing alternative concrete formulations tailored for specific applications. This exploration of new formulations with distinct properties presents a clear opportunity to claim R&D tax credits.

4. Precision Tooling and Methodology

Innovations extend to the development of tooling fixtures and methodologies. These advancements allow for the intricate cutting of holes in precast concrete components, showcasing the industry's commitment to continuous improvement and qualifying for R&D tax credits.

R&D Tax Credit Benefits for Precast Concrete Businesses

Businesses operating within the precast concrete industry are well-positioned to receive substantial cash benefits through R&D tax credit studies. GOAT.tax, with its team of experts, specializes in optimizing these benefits for each tax year. Their in-depth understanding of the industry's innovation-driven nature ensures that eligible activities are accurately identified and properly leveraged to deliver maximum returns.

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The Three Types of Research and Development

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Although claiming this credit can offer considerable benefits for companies engaged in R&D efforts, the process can be challenging.

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