For the oil and gas industry, research and development is an essential part of business. Activities such as exploration, extraction, and processing can lead to research and development projects that are qualified for the credit.   Additionally, expanding refining processes, undertaking new fuel technologies, and meeting environmental regulations can post significant challenges and costs.

The R&D Tax Credit can allow companies in the Oil and Gas industry to recoup these costs, 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 new or improved drilling technologies.
  • Developing new processing techniques for alternative fuels.
  • Developing improvements to exploration processes or software.
  • Developing new products and processes related to oil spill cleanup.
  • Developing new technology for emissions control or monitoring.
  • Designing or engineering platforms or vessels.

For example, Company ABC develops and manufactures software and related equipment as analysis tools for bio-fuels. In order to develop a new analytical tool for specific customer performance requirements, Company ABC develops new software systems, related firmware, and the equipment design required to measure, test, and analyze specific data. Company ABC can capture costs related to the development process and prototype testing.

Working directly with clients and their CPAs, TRCG has delivered R&D services to a wide spectrum of oil and gas companies. Through industry expertise, TRCG can quickly understand your company processes, identify potential qualifying projects, and help you capture valuable tax credits.