Innovation is increasingly an unavoidable companion to manufacturing. Manufacturing, for both Original Equipment Manufacturers (OEMs), and for subcontractors to OEMs, requires a consistent proactively advance every year to ensure a stable product pipeline. This means that manufacturers must constantly improve internal processes and systems to remain competitive long term.
InnovaTax expertly targets these activities, and returns the maximum tax credit for such efforts:
The design and fabrication of new mechanical products is one of the stated objectives for the R&D Credit, and as such, the credit is well suited to benefit these activities.
In addition to developing products, manufacturers routinely improve and augment their systems. Where new features or efficiencies are generated, these also bolster the R&D Credit.
Tooling / Prototyping
A hallmark of the development process is an instance where a prototype or tool is developed. These are distinctive elements where it is clear that some sort of development has occurred.