The use of robotics has become widespread in the agriculture, manufacturing, defense, and healthcare industries, as automation creates safer work environments for employees and increases efficiency. Research and development (R&D) activities in this industry include improving product accuracy, safety, and functionality. If your company builds prototypes, develops code, or engineers a more efficient assembly-line process, it may qualify for cost savings with the R&D Tax Credit.
Employee wages, supplies, cloud computer rental, and third-party contractor costs associated with research and development 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:
- Creating functional prototypes and first articles
- Developing or improving source code for machine learning
- Developing robotic gameplay and interaction for cognitive learning and rehabilitation
- Programming robotic arms (e.g. for surgery assistance)
- Automating warehouses to improve efficiency and reduce costs
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Computer-aided Design/Manufacturing (CAD/CAM) Designers
- Electrical Engineers
- Mechanical Engineers
- Product Managers
- Robotics Engineers
- Software Developers