The plastics, as well as injection molding industries, are unusual in their eligibility for the R&D tax credit. R&D operations span the plastics industry, from injection molding to packaging. Research and development begin with concept development.
Following that, time spent examining alternative designs, process approaches, 3D modeling, CNC programming, and simulations is included in the experimentation phase. Even after an item is made, process improvement initiatives and the development of better testing processes may be tax-deductible. Wage and contract labor expenses, as well as expenditures for raw materials and consumable supplies required in the conduct of research, are all considered qualified costs.
R&D Tax Credit Qualification for Plastics & Injection Molding
The company’s R&D activities span from preliminary engineering analyses to developing custom tooling for production. Qualifying activities include redesigning customer prototypes, experimenting with molds and casts, and iterative trials to meet quality and performance standards.
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.