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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:

  • New Products

    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.

  • Production Processes

    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.

Case Study


Third Party Providers: Electronics companies tend to rely heavily on third party providers to assist with development. This is not a problem with the R&D Credit, and these contractors can qualify. For Electronics Co., these contractors were vetted and included.


Electronics companies sustain among the highest levels of research, and largely expect invention / obsolescence. This yields exceptional credits, balancing a very tumultuous industry. For example, Electronics Co. develops control boards and switches for heavy industry. They developed remote sensors for switches, where switch settings could be seen from anywhere. Here, they were applying a sensor to a toggle switch, which differed from their typical products. They had the base technology proven, but had to evaluate its application to these specific switches. The resulting efforts qualified readily, and Electronics Co. successfully took related activities as credits.

Credit Estimator

Credit Estimator
* Industry Averages are historical IRS averages, representative of actual results compiled by the IRS (based industry NAICS code.)  Estimates of QREs and credits are approximations, and actual results will vary based on actual client costs and qualifications.


This is an estimation only and should not be used on your taxes.  All conclusions involved in this calculation are based on the accuracy of the information provided by the end user.  This calculation utilizes historic information and statistical analysis to determine an industry average combined with a mathematically derived constant for the calculation of State and Federal Benefits.  InnovaTAX cannot and will not warranty the results of this estimation and any party using the estimated figure in place of a genuine calculation does so at its own harm and with full warning from EEPB InnovaTAX that such action is improper.  Further, the estimator developed by InnovaTAX is the intellectual property of InnovaTAX and cannot be used in any other manner than on this website or by InnovaTAX employees.  Due to the fact that the information contained within the calculator is based on industry averages, the results will vary from situation to situation and might be above or below the stated figure.  Consult your tax advisor or EEPB InnovaTAX for further information.


The information used for the calculation of this credit is based on the Internal Revenue Code and Regulations.  EEPB InnovaTAX gathered information from State legislatures and taxing authorities for each state and relied upon the information provided by the state to develop this estimator.  The definitions of activities that qualify for tax credit are based on the definitions set out in the Internal Revenue Code and by each state authority.

EEPB InnovaTAX maintains this website on a regular basis and makes its best effort to update the estimator but does not warrant the calculations involved in the estimator to contain current law at all times.


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EEPB InnovaTax, LLC is a State of Texas registered tax adviser located in Houston, TX.

EEPB InnovaTax specializes in Research and Development income tax consultation; Tax advisory services; Tax and taxation planning advice, information and consultancy services; and Tax consultation.

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