The consumer goods industry, encompassing everything from- electronics and clothing to furniture and sporting equipment, is a prime candidate for claiming R&D tax credits. This program, established in 1981, encourages innovation within US manufacturing, and consumer goods manufacturers form a significant portion of its beneficiaries.
But what qualifies as R&D in this industry? It's not just about salaries; the credit extends to:
- Developing new products and improving existing ones
- Experimenting with new materials and processes
- Designing and building prototypes
- Testing and validating product performance
These activities, crucial for everyday innovation within consumer goods companies, translate to significant tax savings through R&D tax credits. By claiming these credits, manufacturing companies can reinvest in further innovation, enhance competitiveness, and ultimately drive growth.
R&D Tax Credit Qualification for Architecture & Engineering
The company qualifies for R&D tax credits through several groundbreaking activities. These range from concept design using Pro Engineering CAD software to extensive testing and iterative design improvements. Activities also include the creation of master shapes, urethane molds, and the production of prototype and test batches. Each step involves significant technological challenges and uncertainties, thus qualifying for valuable R&D tax credits.
R&D Tax Credits with GOAT.tax
With our consultative approach to the research and development tax credit, we invest time understanding each client’s history, current business direction, and future growth objectives. Each year we re-evaluate a company’s ability to accept the tax credit and provide on-going recommendations to improve the R&D tax credits process.