The industrial automation industry is growing rapidly. According to one industry analysis group, the market is expected to reach $306.2 billion by 2027 (up from $164.2 billion in 2020). Driven by software advances and the integration of human and robotic labor, manufacturing processes are becoming more streamlined, efficient, and safe. If your company is innovating in this space, there is a good chance your activities qualify for research and development (R&D) tax credits.
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:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!