Who qualifies?
The definition of research and experimentation in the tax sense is broader than the definition scientists and chemists use in a laboratory. Research and experimentation activities that may qualify include but are not limited to:

• Utilizing new equipment capabilities to improve manufacturing processes capacity or quality
• Re-engineering products/processes to meet tight tolerances and specifications
• Working with new material specifications or enhancing your capabilities by bringing outsourced processes into your facility
• Engaging in product design or process improvement activities, as an OEM or contract manufacturer
• Design for manufacturability and concurrent engineering

How can LarsonAllen help?
We have worked with businesses in many different industries to help them identify and document their qualifying research activities to maximize their credit potential. Identification of qualifying research activities is not a tax or accounting exercise. It requires an in-depth understanding of manufacturing operations and the involvement of engineering and operations personnel.

LarsonAllen’s manufacturing and tax professionals can help determine if your organization qualifies for a research and experimentation tax credit—it may significantly reduce your tax liability. Based on our experience, the following industries often generate significant tax credits:

• Automated equipment manufacturing
• Precision machining
• Plastics manufacturing
• Chemical manufacturing
• High technology
• Software development
• Original equipment manufacturers
• Environmental systems
• Contract manufacturing
• Specialty construction
• Metal fabricators