The research tax credit is a business credit that has been around since 1981. This incentive provides dollar-for-dollar credits and refunds (with interest) for companies performing activities related to the development of new or improved products and processes, formulas, inventions, techniques and prototypes. In these unique and uncertain times, these credits can provide much needed cash to hire/retain employees, increase R&D, expand production facilities, and more. Many companies involved with tool & die casting are unaware that their activities qualify for these credits, which can be significant.
Examples of Qualifying R&D Activities
- Developing new / improved metal manufacturing processes
- Developing part-specific manufacturing processes
- Experimenting with new or unique materials
- Designing or implementing new equipment or software
- Experiment with precision or speed variables
- Designing and implementing automation techniques
- Developing techniques or processes to eliminate waste, reduce scrap, reduce pollution, or improve recyclability
- Creating prototypes, first articles, and samples
- Producing prototypes via 3-D printing technology
- Creating custom designs/parts/components
Claiming Your Credit
Over thirty states also offer these tax incentives that would apply to the tool and die industry. Because claiming federal and state credits and incentives requires detail analysis and documentation, Monetek will provide a team of experts with decades of experience helping businesses of all types and sizes, to decrease your tax liability.
We actively partner with businesses and their CPA firms to ensure effective utilization and maximum client satisfaction.
For more information about how your company can benefit from the R&D tax credit, please contact Robin LeBlanc at 248.466.0766.