Can Job Shops Qualify for an R & D Tax Credit?
There is a misconception that the R & D Tax Credit is only for companies that are making a product line. We all easily understand if Intel is developing a new microprocessor or Ford is developing a new hybrid engine that they are most likely using an R & D tax credit to reduce their costs. Does this also apply for the tool & die shop that has to come up with a die design to manufacture a stamped part or CNC machine shop that has to develop a manufacturing process to mill a part to customer specifications?
The Precision Metalforming Association(PMA) hosted an interesting webinar on January 24 that highlighted that job shops indeed can and should take advantage of the R & D tax credit. The webinar discussed several items that would qualify including any time spent to figure out methodology to manufacture dies, parts etc. In many cases even time spent quoting could qualify for the credit.
The speaker during the webinar was Mr. Scott Schmidt from Black Line Group. You can contact Scott at scott@blacklinegrp.com for more information.
