In our experience, the following are the top 3 industries that qualify for the R&D Tax credit, along with the activities that can be included.
Software and Technology
There is an incredible amount of innovation happening today, and these activities qualify for the R&D credit. Below are example activities that our clients have captured towards the R&D credit:
- Network design and development
- Coding, programming, testing
- Cloud computing development
- Prototyping of hardware
- New or improved firmware designs
- Design and development of unique database architectures
Architecture and Engineering
Nearly all sectors of engineering qualify for the R&D Credit. We have helped numerous Architecture and Engineering Firms claim the R&D credit for employee and contractor costs associated with the following activities:
- Design and evaluation of structural and mechanical building systems
- CAD modeling and simulation
- Design and development of MEP and HVAC systems
- Conceptual and schematic design development through construction documents
- Site planning based on existing site conditions
- Design of energy efficient building systems
Manufacturing
The R&D Credit was enacted specifically to keep jobs in the United States. Manufacturers can use this credit to offset tax liability for activities such as the ones outlined below:
- New or improved product design
- Product prototype development and testing
- Development and implementation of new or improved manufacturing equipment and/or processes
- Development of unique CNC programming
- Unique fixture design and development
As R&D Consultants, we’ve worked with countless businesses and their CPAs to calculate an R&D Tax Credit. We partner with CPAs just like yourself to provide this valuable benefit to their clients. Interested in learning more? Contact our team to become a strategic partner of EPSA USA !