Claim R&D Tax Credits for Your
Machining Research

Refunds are available for companies performing research within the Machining Industry. The research credit provides dollar-for-dollar cash savings annually for businesses engaged in developing new or improved products and processes. These benefits can supply essential funds to hire additional staff, expand R&D initiatives, invest in production facilities, and support growth.

Examples of Qualifying Machining R&D Work

Many machining companies are unaware that their design and development efforts can generate significant research credits. Examples of qualifying R&D activities and potentially eligible job roles are outlined below.

Coding and programming for machinery communication

Computer-aided design (CAD) and computer-aided manufacturing (CAM) modeling and simulation

Computer numerically controlled (CNC) programming

Designing components with tight tolerances

Developing prototype tooling

Implementing robotics and automated technologies

Minimizing or eliminating warpage in welding and fabrication processes

Testing and experimenting with different materials

Maintaining milling process speed without breakage

Ensuring uniform constraints in the lathing process

Maximizing feeds and speeds while maintaining part quality and integrity

Modeling, simulation, and systematic trial-and-error approaches

Developing special fixture requirements

Alternative Minimum Tax (AMT) Offset

For tax years beginning after December 31, 2015, eligible small businesses with $50 million or less in gross receipts may claim the research credit against AMT liability.

Eligible Job Roles for R&D Credits

Computer Numerically Controlled (CNC) Programmer

Engineering Managers

Engineering Supervisors

Mechanical Engineers

Machinists

Manufacturing Engineers

Start-ups: $500K Payroll Tax Offset

Qualified start-ups may use up to $500,000 of the research credit against payroll taxes. Expanded Treasury regulations now allow a wider range of companies, from start-ups to publicly traded businesses, to take full advantage of this valuable credit.

Quickly Discover Your Potential Savings

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