The oil and gas industry is a field that is often filled with opportunities for the R&D tax credit. Given the accelerated pace of technological advancements in the sector, it’s crucial for companies to consistently innovate to maintain their competitive edge. A broad spectrum of entities, including exploration and production companies, refineries, drilling contractors, and oilfield services companies all engage in activities that can qualify for the credit.
Not only those directly involved in extraction and processing, but also supporting companies such as software and technical service providers may be eligible. Integration efforts, where oil and gas companies need to incorporate third-party products or equipment into their own offerings or processes, can also qualify.
In addition, continual process improvements and automation endeavors undertaken to reduce manufacturing or production costs are critical activities that can qualify. The R&D tax credit can also extend to contractors hired by oil and gas companies to carry out developmental activities, further broadening the credit’s reach within the sector.
Total combined federal and state tax credits for this company were just over $50,000 for the first year.
Founded more than 30 years ago, this company designs, develops, and manufactures custom seals and gaskets for a variety of applications and industries.
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.