Optimization of the tax incentive will offer businesses potentially significant amount of cash flow opportunity which may be maximum up to 10% of annual R&D expenses. Best of all, such innovation tax credit will help you to infuse your business by capital for work that you are performing simply by doing invention or improvement of multitude of products, process or operations.
The new R&D tax credits legislation allows business in more than 40 industries for claiming qualifying activities. Few of such eligible operations are as follows:
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Manufacturing
- Engineering new products and processes
- Experimenting with new design and specifications
- Enhancing product design
- Enhancing manufacturing or production practices
- Developing manufacturing plans
- Simulating modelling, engineering and analysing new products or processes
- Creating specialized equipment and tooling used in production process
- Examining sufficiency of improved or new design
- Creating, testing and developing prototypes
- Developing software technology meant for customer/vendor interaction
Professional services
- Integrating and evaluating new materials and technologies
- Creating and producing new/enhanced technologies
- Engineering new/innovative structure designs
- Creating improved products/systems/materials
- Developing new/improved machinery or equipment and tooling
- Using BIM activities and CAD technology
- Conducting scientific computations for assessing physical properties of any material
- Evaluating certain alternative design methods, materials and subcomponents
- Enhancing or inventing LEED or energy-efficient structures and systems
- Designing and developing any new pump facilities, water supply stations or wastewater treatment stations
- Designing and developing any new/enhanced infrastructure components like dams, rail systems, subsurface tunnels and bridges
- Creating/improving control, alarm, lighting, electrical and communication systems
- Creating/improving mechanical, HVAC systems and building envelope
- Evaluating subterranean condition and multitude of development/design efforts
- Experimenting with new/enhanced designed for using in testing/evaluation practices
Aerospace and defence
- Creating new/improved manufacturing procedures
- Designing of new customer components
- New composite materials development
- Generating prototypes for testing and validation
- Producing new tools, machines, fixtures, jigs for aircraft assembly/manufacturing
- New/improved welding, metal forming, machining strategies or metal forming creation
- Automating various processes
- Engineering plans/integration kits designing
- Improving design/development of new/existing components
- Creating new software
- Inventing of new surface-hardening solutions Improving output/reduce cycle periods experiments
Agriculture
- For creating new field or warehouse processes
- Inventing specialized manufacturing and harvesting tooling
- Developing new type of hybrids for plants, livestock or crops
- Change of harvesting techniques for improving harvest or to yield efficiency
- Enhancing and updating pest management
- Automating processes
- Designing or utilizing any new system of irrigation
- Development of new/improved packaging/preservative chemicals
- Designing new software
- Improving process of soil and rootstock
Apparel
- Utilizing new/improved functions for designing clothing and accessories
- Doing apparel innovations which may qualify for the utility patents
- Creating any new product/performance specifications meant for fabric/materials construction technologies
- Inventing new manufacturing practices
- Using new apparel materials and technologies in new/improved clothing designs
- Producing/testing samples and prototypes
- Designing any software for new industry-related/process-oriented
Architecture
- Innovative/unique designs for different structures
- Computer-aided design and computer-aided engineering activities
- Innovative/unique new energy-efficient, LEED, or “green” alternatives designing
- Assessing design by various forms of computational analysis and modelling
Civil engineering
- Designing various infrastructure and utilizing green/solar technologies
- Designing of water/sewage systems in very complex environments
- Designing of wastewater treatment plant
- Developing solutions to various infrastructure challenges
- Designing roads, tunnels and bridges
- Developing solutions about potential environmental issues