Technological advances in the shipbuilding & marine manufacturing industries are creating impressive research and development (R&D) opportunities. If your shipbuilding company experiments with new tools and processes, improves ship designs, or builds on existing marine technology, it may be eligible for significant tax savings. Claiming the federal and state R&D Tax Credit can help offset the costs of these and other activities involving R&D.
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:
- Designing 3D models and prototypes components, including first-article vessels
- Implementing artificial intelligence (AI) and robotics to increase worker safety or production efficiency
- Evaluating new and improved materials for hull construction
- Developing new propulsion systems or ship controls software
- Innovating manufacturing processes (e.g. lamination, cutting, welding, assembly)
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Electrical Engineers
- Marine Engineers
- Mechanical Engineers
- Naval Architects
- Navigation Specialists
- Quality Control (QC) Personnel
- Software Developers
- Solderers / Welders