Exploring Research and Development Tax Credits: Automotive
Fuel-efficiency standards, operational costs and the supplier's role in developing new content continue to transform the automotive industry and reshape its research and development (R&D) programs. You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include:
- Designing and developing new or improved products or manufacturing processes
- Performing analyses to identify opportunities for product or manufacturing process improvement
- Developing new product or process test methodologies to evaluate performance and assess feasibility of alternative conceptual designs
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service and Treasury who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate computation and information gathering, and a Quality Assurance team that reviews deliverables and computations.
For more information, see the attachment below.