Custom Fabricators: Things You Do All the Time That Can Qualify for the R&D Tax Credit
There is a good chance your company is eligible to take advantage of the research and development (R&D) tax credit for things it does all the time. Custom fabricators of all sizes may qualify. If your company is designing parts to customer specifications or taking customer part prints and developing the manufacturing process to make those parts, there is a good chance your company will qualify for the R&D tax credit.
Some common things custom fabricators do all the time that have qualifying R&D activities are fabricating prototypes; performing first article production runs; and designing tools, jigs, dies and molds to be used in the manufacturing process. Even the improvement of more reliable fabrication processes may qualify. These are probably things your company is doing every day to stay competitive in the current manufacturing environment.
Wipfli works with our clients to maximize R&D tax credit opportunities at both the federal and state levels. The broadening of the definition of R&D activities in recent years has expanded the expenditures that can qualify for the credit, so even if you are claiming a credit, you still may be missing out on opportunities. Contact Wipfli today to learn if you can benefit from the R&D tax credit.
