Industries | R&D

R&D Tax Credit Manufacturing
and Distribution

R&D Tax Credits for the
Manufacturing and Distribution Industry

From its establishment in 1981, the R&D tax credit has primarily targeted the manufacturing sector. This incentive benefits a wide spectrum of manufacturers across the United States, ranging from those producing consumer goods, food items, medical products, electronics, pharmaceuticals, automotive goods, to those involved in furniture, heavy machinery, steel parts, and tool and die manufacturing.

Such companies engage in R&D activities as they strive to advance their products and manufacturing processes, crucial for maintaining competitiveness in their respective industries.

These companies are continually looking for ways to improve product designs and develop repeatable and highly complex production processes. Activities such as the production of prototypes, first articles, and component validation may also qualify for the credit.

Qualified Research Activities for
Manufacturing and Distribution

Download Our Manufacturing and Distribution Case Study

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Highlights in
the Case Study

  • $40 Million Revenue
  • R&D expenses of about &6.5MM
  • Average Annual R&D Tax Credit Realized: $415,000

This company specializes in developing complex and highly sophisticated electronic products including emergency response systems, communications systems, data networks, digital media hubs, and various technologies for use in urban environments. 

The company may also design and develop the internal componentry of its products including mechanical, electrical, and software systems. 

Research is performed by designers, mechanical and electrical engineers, software developers, computer engineers, CNC programmers, CAD designers, machinists, quality control and technicians.

Take Advantage of the R&D Tax Credit with Source Advisors

The R&D tax credit can help a wide variety of businesses offset and reduce their income tax liability, in addition to providing many other benefits. Our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can then help drive overall growth.