RESEARCH AND DEVELOPMENT TAX INCENTIVES FOR THE PLASTIC INJECTION MOLDING INDUSTRY
Plastic injection molding companies may not realize that their activities related to the design and development of many types of systems may constitute qualified R&D activities, potentially entitling them to significant R&D incentives. If you think you have to be a manufacturer or software developer to be conducting qualified activities as defined by the Internal Revenue Code, think again.
If your firm is in the plastic injection industry, there is a strong chance that you could benefit from an R&D tax credit study. Speak to our engineering experts to help you understand if your activities qualify for the R&D credit.
Examples of activities and innovations eligible for R&D tax incentives include the following:
- Designing, prototyping, fabricating and/or testing mold and tooling
- Engineering and process development
- Applying material application study
- Conducting temperature study
- Studying injection time analysis
- Performing a gate seal study
- Conducting a cavity balance assessment
- Performing a rack and hold pressure study
- Conducting first article test runs by engineers, tool makers, production supervisors, and operators
- Ensuring quality assurance, including inspecting testing of the parts produced including dimension checks, visual inspections, non-destructive testing, leak testing, and other part specific tests
RESEARCH AND DEVELOPMENT TAX INCENTIVES FOR TOOL & DIE
Today’s tool and die makers may not realize that their activities could make them excellent candidates for generous research and development (R&D) tax incentives, and even if they do, the traditional notions of R&D may cause them to limit qualified research expenditures to activities associated with invention or new product development. Many tool and die operations, however, conduct extensive activities to design and develop the machining equipment and processes to achieve specific project requirements or to stay ahead of competitors in the marketplace. All these activities may require time and money both in the engineering department and on the production floor itself, which may be captured as qualified research expenditures leading to significant tax benefits.
If your company has recently introduced new or improved products or processes, there is a strong chance that you could benefit from an R&D Tax Credit study. Speak to our engineering experts to help you understand if your activities qualify for the R&D credit.
Examples of tool and die activities and innovations that are likely qualifiers for the R&D tax benefit include:
- Designing and developing first articles, samples and prototypes
- Practicing innovative product development using computer-aided design tools
- Experimenting with new machining trends
- Developing new, improved, or second-generation tools, dies, molds and other devices
- Tooling and equipment fixture design and development
- Developing unique computer numerical control programs and/or programmable logic controllers
- Developing custom alloys and manufacturing processes
- Designing innovative equipment
- Prototyping and three-dimensional solid modeling
- Testing and stress analysis and maintaining quality assurance