Despite spanning three NAICS codes and represented by over 600,000 taxpayers, less than 4% of U.S. businesses identify as a "manufacturer". However, over the life of the R&D Tax Credit, manufacturers have been the largest credit claimant pool. The most recent published data from the IRS shows that approximately 60% of the total credits claimed by corporations was claimed by the manufacturing sector.
This industry area includes everything from large-scale fabrication and ship building to small-scale precision manufacturing and job shops. Thus, regardless of the size of the business, its activities are likely part of day to day activities and worth exploring for potential tax credit savings. Common qualifying R&D activities include, but are not limited to:
Qualifying Activities: Metalforming, CAD design, Programming Logic Controls and CNC
Qualifying Personnel: Floor Managers, Project Managers, Machinists
Qualifying Activities: CNC Machining, Prototyping, First Run Articles, Quality Assurance
Qualifying Personnel: Project Managers, Senior Machinists, QA Lead
Qualifying Activities: Prototyping, First Run Articles, CAD Design
Qualifying Personnel: Project Managers, Production Superintendent, Machinists