A question we are often asked is, “can my business or industry take the R & E Credit?” In most cases, the answer is “yes, if you have qualifying activities, you can certainly claim the credit no matter what industry you are in.” 

Many industries can benefit from the credit. The manufacturing industry most often benefits from the credit only because, up to this point, 60% percent of those claiming the credit have been in manufacturing. Don’t let that stop you if you are in another industry. Other common industries that benefit from the credit are Aerospace, Agriculture, Architectural, Automotive, Chemical, Computer Software, Cosmetics, Electronics, Engineering, Equipment, Food & Beverage, Hardware Development, Medical, Pharmaceuticals, Telecommunications, Tooling, and many others.

The question shouldn’t be, “can I take the credit?”, but rather, “what activities could qualify me to take advantage of this credit?” In most cases, companies are already performing activities that qualify, but they are not taking advantage of this credit. Many are unaware that this credit exists, which leaves dollars on the table. These dollars can be reinvested into other new and improved products, processes, techniques, formulas, inventions, or software.

It’s important to understand the credit, how it relates to your industry, and more specifically, how it relates to your company. Billions of dollars are claimed every year; however, the IRS believes there are many more opportunities to claim this credit. Find out today if you perform activities that qualify for this credit.

My next post will speak more specifically on what activities qualify to claim the R & E credit. Stay tuned to learn more. If you are eager to learn more before the next blog post, please call 717-263-3910 and ask for Angi. 

To learn more about R & E Credit, click here.