The consumer packaged goods (CPGs) manufacturing industry encompasses everything from children’s toys to toiletries to laundry detergent. Industry 4.0 (I4.0) has improved manufacturing efficiencies at every point along the continuum, from supply chain to production, packaging, and distribution. CPG manufacturers are constantly innovating to increase efficiencies, and the research and development (R&D) involved in improving the manufacturing process, from design to delivery, most likely qualifies for the R&D tax credit.

Employee wages, raw materials and supplies, cloud computer rental, and third-party contractor costs associated with R&D activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates. 

Examples of qualifying activities:

• Optimizing process capabilities through experimentation
• Adding automation to production lines
• Developing new software or AI platforms
• Upgrading process machinery to handle new packaging materials
• Implementing novel manufacturing execution systems (MES)
• Testing new processes for improved yield or efficiency
• Designing enhanced safety protocols
  

Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs? 

• C-Suite
• CAD Modelers
• Mechanical Engineers
• Material Scientists
• Product Managers
• QA/QC Personnel
• Research Scientists
• Software Engineers
• Systems Analysts
  

Use our R&D Tax Calculator to estimate your potential benefits, and partner with Strike to claim your tax benefits with no up-front costs. Contact one of our experts today.