Your manufacturing company may be eligible for the R&D credit.

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:

• Prototyping;

• CNC Programming;

• CAD Modeling/Development;

• Injection/Rotational Molding; and

• Custom Fabrication.