DID YOU KNOW?
- Certain product development and process improvement activities performed by manufacturing companies may qualify for sizable federal and state R&D tax credits.
- BRAYN’s expertise includes industry standard tracking and job costing software, which provides for efficient cost analysis and excellent substantiation.
- The R&D tax credit is based on “qualified research expenses” (QREs) – for every dollar spent on QREs, you can earn up to 8.0% in federal tax credits! Additionally, over 40 states offer similar R&D tax incentives that can double benefits in some cases.
MANUFACTURING CASE STUDY
ITEM |
AVERAGE ANNUAL AMOUNT |
Gross Revenues |
$ 15,000,000 |
Total Payroll |
$ 5,600,000 |
Qualified Research Expenses (QREs) |
$ 1,100,000 |
Net Federal Credits |
$ 72,000 |
Net State Credits |
$ 12,000 |
TOTAL NET FEDERAL AND STATE CREDITS |
$ 84,000 |
QUALIFYING ACTIVITIES
◾ Product Design & Testing
◾ First-Article Runs
◾ CNC Programming
◾ Tooling Development
◾ Equipment Development
◾ Process Design & Development
◾ Quality Assurance