Companies in the chemicals and plastics industry are constantly developing new products, exploring new materials, and researching new production and manufacturing processes. These activities can take up significant resources and capital.
The R&D Tax Credit can allow companies in the chemicals and plastic industry to increase cash flow, invest in expansion projects, and continue to grow their business. Examples of activities that could qualify for the R&D Credit include:
- Developing and evaluating new or improved materials, components, or formulations.
- Designing manufacturing processes for new products or EPA compliance and testing.
- Developing new technology for the production process to yield or reduce waste, byproducts, or environmental impact.
- Developing prototype tooling, fixtures, or product for further evaluations.
- Conducting trial production runs.
For example, Company ABC designs and develops industrial paint related products, such as paint thinners and coatings. The Company aims to design and develop a new paint thinner formulation that meets the requirements of a new customer group. In order to do so, the Company undertakes a detailed chemical formulation process to develop the optimal thinner formula. In this case, the Company can qualify for the credit for developing and testing a new formulation.
Working directly with clients and their CPAs, TRCG has delivered R&D services to a wide spectrum of chemicals and plastics companies. Through industry expertise, TRCG can quickly understand your company processes, identify potential qualifying projects, and help you capture valuable tax credits.