Plastic injection molding is used to create thousands of identical units for a specific purpose, and significant research and development (R&D) goes into each project. This can include designing and creating the mold, selecting materials and components, configuring production processes, and final product QA/QC. Many (if not all) of these activities qualify for the R&D tax credit. For example, the costs incurred to design and produce the molds for each project (as long as they are unique) can be qualified as supplies and count toward your R&D tax credit claim.
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!