Process developments in the oil & gas and plastics industries involve improvements in extraction, refining, packaging, and transportation. The petrochemical industry relies heavily on research and development (R&D), and the government offers significant tax incentives to support U.S.-based innovation. If your company creates novel processes, techniques, or formulations, it may be eligible to claim the R&D Tax Credit.
Employee wages, raw materials and supplies, 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 what your potential state tax credit!