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6 Ways Manufacturing Process Optimization Qualifies You for the R&D Tax Credit

Dec 12, 2019

manufacturing processEconomic conditions are good, manufacturers are profitable and growing, and the 2017 Tax Cuts and Jobs Act has given small and mid-sized business owners more incentive to invest in their businesses. Couple that with a short supply of quality labor, wage growth, and growing order flow from new and existing customers, and the need to optimize existing manufacturing processes becomes even more critical.

But beyond the obvious benefits that come with a more streamlined business, optimization could bring an added bonus for some companies in the form of R&D Tax Credits.

Whether you're optimizing your processes to reduce costs for your client, streamline your production, or to just find a better way to do what you do best, you could qualify for the R&D Tax Credit:

Get Tax Credits, Grow Faster

Here are a few examples of manufacturing process optimization initiatives that could further reduce your tax liability by qualifying you for R&D credits.

  • Evaluating new equipment
  • Installing, configuring, and learning how to use new equipment
  • Reconfiguring the shop floor
  • Developing, improving, or implementing ISO standards
  • Software enhancements
  • Job improvements to reduce cost or improve quality, performance, and reliability
  • Evaluating new materials
  • Improvements to tools and fixtures
  • Workflow or material handling improvements
  • Prototype testing improvements

What you do on an ongoing basis to reduce cost, improve operational efficiencies, reduce time-to-market, and improve product quality, performance, and reliability are all potential candidates for additional R&D credits. This can provide additional funding to reinvest back into your business and help you be more competitive, profitable, and grow faster.

So, what are you waiting for?

Find out How Big Your Credit Could Be