Tool & die manufacturers specialize in customized parts and tooling for their clients, and direct significant resources toward research and development (R&D). If your company designs novel prototypes, uses modeling technology, or optimizes manufacturing methods, it may be eligible for significant tax savings. Companies can claim the R&D Tax Credit to recoup certain business expenses and reinvest in their workforce and growth strategy.
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 your potential state tax credit!