Research and development tax credits provide golden, yet often overlooked, opportunities for manufacturers to recoup expenses of new product development, product changes or manufacturing process improvements. Recent changes to tax regulations and legislation have expanded these credits, making it easier for businesses to take advantage of the savings.
This week, I had the pleasure of speaking with Cedar Robinson, a corporate tax consultant with more than 18 years of specialized R&D Tax credit experience. Robinson explained that businesses do not have to be a high-tech research type company to qualify for tax benefits. In fact, qualified research activities often include all phases of product upgrades, new product research and development, and product & manufacturing process upgrades to improve quality, reliability or efficiency. Most manufacturers are continuously improving production processes and efficiency as part of everyday operations and virtually all manufacturers develop new or improved products. As a result, Robinson indicated that nearly all manufacturers are eligible for the R&D Tax credit. [Read more…]