The R&D Tax Credit Aspects of Ceramics
Ceramics are inorganic, nonmetallic, often
crystalline, materials made by the action of high temperature
and subsequent cooling, similar to glass. They traditionally
consist of hard, brittle, insulating, and corrosion-resistant
materials.
The word ceramic commonly evokes articles
of earthenware, pottery, or porcelain made of clay minerals.
Ceramics is one of the most ancient industries on Earth. The
origins of the art and technique of making objects from clay
and similar materials, treated by firing, can be traced back
to as early as 24,000 BC.
This ancient practice not only endured the
consecutive rise and fall of different eras, but has evolved
and secured its place in modern times. Currently, advanced
ceramics engineering constitutes a major R&D opportunity.
This article will discuss promising fields
for advanced ceramics applications and the Federal R&D tax
credit opportunity available for companies investing in
eligible ceramics-related innovation activities.
The Research &
Development Tax Credit
Enacted in 1981, the Federal Research and
Development (R&D) Tax Credit allows a credit of up to 13
percent of eligible spending for new and improved products and
processes. Qualified research must meet the following four
criteria:
- New or improved products, processes,
or software
- Technological in nature
- Elimination of uncertainty
- Process of experimentation
Eligible costs include employee wages, cost
of supplies, cost of testing, contract research expenses, and
costs associated with developing a patent. On January 2, 2013,
President Obama signed the bill extending the R&D Tax
Credit for 2012 and 2013 tax years.
Traditional Ceramics
Applications
Ceramic's uniquely variable set of
properties is an unquestionable asset in many industries and
applications. Only a few decades ago, many of the current
classes of ceramic technologies would have seemed
inconceivable.
Historically, ceramics have been utilized
for their refractory (thermally insulating) and electrically
insulating properties in applications such as spark plugs and
dielectric layers of capacitors. However, modern ceramics
discoveries have yielded materials with diverse electrical
properties including standard conductors, ion conductors, and
even semiconductors. These improvements have lead to a myriad
of novel applications, for example, liquid and gas sensors and
fuel cell technologies. Additional phenomena such as
ferroelectric and magnetic properties have also been observed,
resulting in memory storage uses in computing technologies and
numerous types of superconductors.
Despite their relatively high brittleness,
ceramics have become a common material used in mechanical
applications requiring enhanced hardness, or extreme wear,
corrosion, and thermal resistance. Examples of these
applications include structural elements, such as bricks, or
high strength tools and equipment, bearings, and abrasives.
Recently, tremendous research and development has been devoted
to high temperature, low density ceramics for high efficiency
turbines used in energy generation applications.
These properties have also developed
completely new and innovative applications for advanced
ceramic materials. The chemical inertness and similar
mechanical properties to natural bone have solidified ceramics
as a primary choice for many biocompatible medical implants.
The high strength and brittleness has been utilized in
ballistics shielding, ranging from bulletproof vests to tank
armor.
Advanced Ceramics
As ceramics technology has progressed, it
has become central to a variety of industries. The so-called
advanced applications of ceramics are based on the specific
thermal, electrical, mechanical, optical, magnetic,
biomedical, and chemical properties of such materials.
Examples include segments, such as electronics,
transportation, military, and healthcare.
The following table, adapted from The
American Ceramic Society, summarizes how ceramic materials
contributed to the National Academy of Engineering's Top 20
Engineering Achievements that have had the greatest impact on
the quality of life in the 20th century.

Current Ceramics
Innovation
Advanced ceramics studies have uncovered a
number of new, diverse, and exciting functionalities of these
"ancient" materials. Ceramics engineering is currently a field
of tremendous activity and holds countless opportunities for
innovation. Companies engaged in ceramics-related R&D
activities may be entitled to significant Federal tax credits.
The following paragraphs will portrait recent examples of
ceramics innovation efforts.
- Ceramic Matrix Composites
General Electric Co. recently announced the construction of
a Ceramic Matrix Composites (CMCs) plant in Asheville, N.C.
The 125,000 square feet facility will produce engine parts
made of CMCs, which combine silicon carbide and ceramic
resin. GE's investment on advanced composite materials is
based on the anticipation of significant improvements over
the traditional engine parts, made from nickel and titanium
metal alloys. Advances would include increased durability
and reduced weight, therefore resulting in fewer maintenance
costs and lower fuel consumption.
According to GE, long lasting concerns about the fragility
of CMCs would be tackled by newly developed coatings and
processing techniques. Their ultimate objective is to
develop a new material that presents the heat resistance of
ceramics and the strength of metal. The company's ambition
is to increase the use of CMCs in its engines to 50% (from
the original 10%).
Recent advances are the result of over two decades of
ongoing R&D efforts. Other branches of business, such as
GE Energy and GE Oil & Gas, are also investing in the
development of new compounds made of CMCs.
- 3D printing
Additive manufacturing, or 3D
printing, is the revolutionary technology of building
three-dimensional objects from digital models. This is
achieved through an additive technique, which consists in
superposing successive layers of material. 3D printed
objects are usually made of plastics. PLA, or polylactic
acid, and ABS, or acrylonitrile butadiene styrene, are
currently the most commonly used materials.
Ceramics, however, can play a major role in the bourgeoning
3D printing world. New York-based Shapeways, a company that
allows costumers to print on-demand 3D objects, pioneered
the 3D printing of customized ceramic objects. The idea is
to explore a "food safe" material, encouraging the demand
for household products.
The printing process of ceramic objects consists of adding
multiple layers of fine ceramic powder, which are then bound
together with a binder, fired, and glazed with a lead-free,
non-toxic finish. Due to the unique characteristics of
ceramics, brittleness in particular, they remain one of the
trickier materials to design for. Given the expected
dissemination of 3D printing, R&D efforts are necessary
to facilitate the design and production of ceramic objects.
R&D opportunities also concern improved methods and
processes. Inspired by ancient Egyptian Faience techniques,
the University of the West of England is currently working
on a self-glazing 3D printed ceramic. This innovative
procedure would significantly simplify and cut costs of
ceramic 3D printing.
- Nanostructured Ceramics
Nanotechnology promises to benefit society in countless
ways. In the words of Stan Williams, Director of Quantum
Science Research of the HP Laboratory, "Everything can be
made in some way better (...) if it's engineered and
manufactured at the nanometer scale." This could not be
different for ceramics.
The development of new nanostructured ceramics is a
promising field for R&D efforts. Cornell University's
Department of Materials Science and Engineering has been
engaged in important research using a novel synthetic
approach to explore new nanostructured ceramics. An example
is the block-copolymer-directed silica synthesis leading to
unusual structures, which can potentially improve ceramics
performance for a number of applications.
MemPro Materials from Broomfield, CO is yet another example
of the combination of nanotechnology and ceramics. The
company is currently working on the development of nanoscale
ceramic fibers that conduct electricity. These tiny fibers
can be added to other materials making them equally good
conductors. If used in 3D printing materials, for instance,
this technology can facilitate the production of circuit
boards for cellphones and computers. The company plans to
use this process to develop improved materials, including
flame-retardant plastics, and catalysts to change biomass
into fuel.
- Ceramics in Fuel Cells
Even though fuel cells represent an important alternative to
energy production and combined heat and power solutions,
their inherently high costs have been in the way of a more
widespread adoption. Legacy fuel cell technologies, such as
proton exchange membranes (PEMs), phosphoric acid fuel cells
(PAFCs), and molten carbonate fuel cells (MCFCs), rely on
costly precious metals, corrosive acids, and hard to contain
molten materials. In this scenario, even combined heat and
power schemes are hardly economically advantageous.
Made of low cost ceramic materials, solid oxide fuel cells
(SOFCs) stand out as a promising alternative. According to
Bloom Energy, a Silicon Valley fuel cell start-up, "SOFCs
operate at extremely high temperature (typically above 800
degrees Celsius). This high temperature gives them extremely
high electrical efficiencies, and fuel flexibility, both of
which contribute to better economics (...)."
These same characteristics, however, also generate several
engineering challenges. Important R&D efforts have been
carried out to overcome the technical obstacles involved in
the commercialization of ceramic fuel cells. SoftBank, a $70
billion Japanese technology investment company, has recently
established of a joint venture with Bloom Energy, which will
sell Japanese corporations electricity generated by fuel
cells. Bloom's SOFCs use a thin ceramic wafer made from
sand. They constitute a relatively inexpensive solution for
Japan, an energy-poor country in the aftermath of a nuclear
disaster.
Conclusion
Ceramics, one of the world's most ancient
industries, is now key to the development of a number of
'futuristic' technologies. Not only have advanced ceramics
applications been central to major engineering achievements in
the 20th Century, but they are also at the heart of important
ongoing R&D efforts. From aviation to alternative energy
production, ceramics represent a promising field for
innovation. Federal R&D tax credits are available to
support eligible ceramics-related innovation activities.