Select R&D Eligible Industries

Contrary to common misconceptions, R&D does not take place solely in laboratories or traditional R&D departments. Companies from a variety of industries can take advantage of the tremendous Research and Development tax incentives. R&D Tax Savers' experts have helped numerous clients from different segments benefit from R&D tax credits. Your company can be next!

Here are some examples of industry specific practices that are likely to qualify under the Internal Revenue Code's definition of R&D:
 

Aerospace & Defense

Aerospace and Defense companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Efforts to enhance competitiveness through design or process evolution that allow for superior performance attributes and/or reduced costs of production.
  • Efficiency improvements (such as improved manufacturing machinery and design processes that lower raw material needs, streamlined manufacturing methods that decrease steps in production and waste, and reduce the cost of iterating the product for ever more narrow segments).
  • Innovative designs that increase adequacy to distinct customer requirements.
  • Improvements and innovation in communications and systems integration.
  • Innovative products and methods that respond to increased regulation and cost-cutting measures.
  • Design and production of small ships.
  • Design and production of unmanned aerial vehicles.
  • Use of automated processes and robotics.

Agriculture

      The common misconception about the Research and Development (R&D) tax credit is solely for traditional white lab-coat activities and manufacturers. Recent legislation has broadened the industries and companies that qualify for the credit. Common R&D eligible activities include:

  • Pre-production design and engineering of a new product or improved existing product, process, or production improvement
  • Prototyping and patent applications
  • Experimenting or testing new concepts, formulations, materials, tools, and procedures
  • Software development for internal use or sale
  • General trial and error experimentation

Apparel & Textiles

      Despite the tremendous tax incentive, most eligible companies (more than 65%) are unaware or fail to take full advantage of the generous R&D tax credit. Companies, large and small, in a broad range of industries, often overlook research expenses in their field, due to misconceptions about common activities that qualify. Our experts understand the R&D tax credit is not limited to traditional white lab-coat activities or manufacturing, and can use our streamlined process to extract the full potential of your company's R&D. If your company is involved in any type of research, development, or improvement of new or existing products, processes, formulations, or software your company likely qualifies, and R&D Tax Savers can help you quantify and defend your R&D tax credit.

Architecture & Engineering

Engineering firms engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Design of innovative and improved systems (HVAC, refrigeration, ventilation, plumbing, piping, and fire protection are a few examples)
  • Creation of improved construction techniques, including sustainability concerns, pollution control efforts, and waste treatment
  • Development of unique designs, material selection, techniques, and processes aimed at constructing improved structures
  • Environmental and sustainable design
  • Design of unique drainage systems and flare stations
  • Development of efficient gas extraction and treatment systems
  • Development of innovative electrical systems and electrical retrofits
  • Design of a variety of systems, such as control, power, telecommunication, security, fire protection, traffic signal, etc
  • Programmable Logic Controller (PLC)
  • CAD design
  • Unique projects and techniques that respond to distinctive soil and hydrological conditions as well as particular structural requirements
  • New or improved designs that optimize material, energy and water usage

Biotechnology


Biotechnology companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Biodegradable Packaging Materials.
  • Disease Resistant Crops.
  • Biofuels From Plant Waste.
  • Bioremediation.
  • Fuel and Feed from Plant Biomass.
  • Aerobic Granulation and other wastewater treatment technologies.
  • Biofilm Control.
  • Odor Control Techniques.
  • Integrated Biosystems (such as integrated aquaculture production).
  • Organic Solids Stabilization.
  • New or improved drugs or drug production processes (such as highly efficient drug pipelines).
  • Innovative techniques to test drugs (particularly on human cells).
  • Multi-application approach to synthetic microbes.
  • Research on treatments and vaccines for incurable or recurrent diseases (such such as cancer, malaria, osteoporosis, FLU).

Chemical


      Since its adoption in 1981, the R&D tax credit has been a significant tool to promote domestic innovation and maximize the bottom line of companies across a wide spectrum of industries. Over the past 30 years, the credit has evolved constantly through legislation and treasury regulations which have developed into 3 pronouced phases, Adoption, Redefinition, and Examination. Our expertise and understanding of the history of the R&D tax credit allow us a better approach and refined process in order to capture the maximum savings and required documentation for your company.

Construction


      In extreme situations, audit appeals can result in cases filed with the U.S. Tax Court. Through this process, the court further interprets and clarifies the rules and regulations regarding the R&D tax credit. Specific rulings can effectively change how the tax credit is handled by companies and the IRS. Therefore, we must stay up to date on the issues and resolutions in R&D case law. By understanding the details and requirements that the IRS emphasizes, we can create simpler yet stronger claims and maximize your savings.

Design Companies


      As part of our own research and development, we are continuously following the latest R&D tax credit developments in legislation and case law, in order to provide our clients with the most comprehensive information through our published articles, online encyclopedia, and blog. Our experts understand the importance of knowledge, collaboration, and most importantly sharing so we strive to get the most up to date information and convey it to our clients in a simpler more comprehensible way.

Electronics

Electronics companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Development of innovative electronic products and equipment.
  • Creation of improved networking devices.
  • Design of more efficient processes and techniques, such as factory automation and robotics, development of new testing methods, creation of prototypes and first articles.
  • Nanomanufacturing of electronic devices.
  • Semiconductor companies producing photovoltaic cells and custom chipsets that require substantial design capability.
  • Network Equipment Providers using highly efficient technology that reduces heating and cooling costs during the manufacturing process.
  • Industrial Automation companies developing new or improved water and energy management systems.
  • Design of innovative office equipment with built-in intelligence, such as the ability of recognizing users and preferences.
  • Integration of remote monitoring and disease management systems into electronic devices.
  • Consumer electronics companies designing products with new built-in intelligence and embedded software that provide users with a differentiated value proposition.

Generic Drugs

Generic drugs companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Development of new or improved drug substances and formulations.
  • Innovative production processes.
  • New strengths, dosage forms, routes of administration, and indications to generic products.
  • Biosimilars, also known as follow-on biologics (or biopharmaceuticals).
  • Innovative solutions to comply with governmental standards of quality, safety, and efficacy.
  • Initiatives that improve Quality by Design.
  • Improve the efficiency of current methods for assessment of bioequivalence of systemically acting drugs including products that use complex and novel drug delivery technologies.
  • Development of methods for the assessment of bioequivalence of locally acting drugs such as topical and inhalation products.

Information Technology & Telecommunications

Information Technology and Communication companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Creation and testing of prototypes.
  • Development of custom communication networks.
  • Improvements or innovations in large-scale networks
  • Design of improved means for data management.
  • Efforts to develop and deploy comprehensive, integrated, sustainable, and secure cyberinfrastructure.
  • New or improved human-computer interaction technologies.
  • Enhanced information management systems.
  • Nanotechnology and cyber-physical systems.
  • High end computing infrastructure and applications.
  • Initiatives to increase efficiency in the use of the radio spectrum.
  • Cybersecurity and Information Assurance.

Manufacturing

Manufacturing companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • New or improved products, designs, equipment, and manufacturing processes.
  • Creation of second generation products.
  • Development of prototypes.
  • Cellular manufacturing.
  • Design and evaluation of alternative processes aimed at enhancing cost-effectiveness and product performance.
  • Biomimicry, in other words, drawing manufacturing inspiration from nature.
  • Three-dimensional or Tri-Gate transitors.
  • Hyper-carbide cutting tools.
  • Synthetic body parts.
  • Robotic and automated processes with high precision levels and vision capabilities.
  • Development of sustainable products and processes, such as green steel technology using rubber tires.
  • Highly efficient batch processing using multivariate-based predictive models.
  • Use of predictive header pressure controllers.
Remanufacturing companies engaged in any of the following activities are likely to be eligible for R&D tax credits:
  • New or improved methods to recover and reuse products.
  • Innovations that lead to better compliance with governmental regulations.
  • Novel processes that reduce waste, promote energy conservation, and lower carbon emissions.
  • Development of more efficient processes and technologies and identification of new product categories and markets.
  • Highly efficient technologies and processes, such as disassembling, cleaning, inspecting, and testing of used products.
  • Innovative or improved methods to rebuild and enhance electronic and hydraulic systems of automotive products.
  • Improved processes that prevent costly ergonomics injuries, reduce inventory, and recycle as much core content as possible.
  • Improved material management (such as the establishment of conditions and configuration classifications).
  • Incorporation of modular product design methods that allow for more efficient disassembling and reassembling, as well as the infusion of technological upgrades during the remanufacturing process.

Advanced Materials

Advanced Materials companies working with metals, polymers (thermoplastics and thermosets), ceramics, glasses, or composites are likely to qualify for R&D tax credits when engaged in the following activities:

  • Development of new materials and modifications to existing ones generating superior performance in one or more features that are central to the application under consideration.
  • Improvement of the performance characteristics (technology lifecycle) and their sales volume (product lifecycle).
  • Processing of materials into high-value added niche applications.
  • Creation of new or improved processes for the manufacture of materials.
  • Miniaturization of electronic components.
  • Innovative use of existing materials for medical applications and hybrid methods which use new materials to assist the body in self repair.
  • Development of new or improved nanomateirals.
  • Research and development of superconducting materials.
  • Reprocessing of waste materials.

Pharmaceuticals

Pharmaceutical companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Development of new or improved products.
  • Materials science (innovative use of existing chemicals).
  • Improvements in product design (new formulas, enhanced product yield and shelf-life, are a few examples).
  • Innovative strategies to lower drug attrition rates.
  • Enhancements in process design, optimization, automation, and control.
  • Innovations that lead to better compliance to regulatory standards.
  • Development of personalized treatments, as opposed to single-disease technologies.
  • Creation of tools that can help people better understand and manage their condition.
  • Innovative streamlining efforts that lead to higher efficiency and minimize costs (of testing methods and manufacturing processes, for instance).
  • Collaborative development agreements and partnering initiatives for R&D.
  • Many more...

          The common misconception about the Research and Development (R&D) tax credit is solely for traditional white lab-coat activities and manufacturers. Recent legislation has broadened the industries and companies that qualify for the credit. Common R&D eligible activities include:

    • Pre-production design and engineering of a new product or improved existing product, process, or production improvement
    • Prototyping and patent applications
    • Experimenting or testing new concepts, formulations, materials, tools, and procedures
    • Software development for internal use or sale
    • General trial and error experimentation