Exploring Research and Development Tax Credits: Consumer Products
In the consumer products industry, research and development (R&D) is driving new products, tastes, product lines and manufacturing processes. And innovative software development often provides new connections to consumers, suppliers and contractors. 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:
- Developing and/or implementing new manufacturing technology to increase product quality or reduce cost, waste, scrap, spoilage or defects
- Using computers or digital technology to automate or support tasks that were previously manual, including product testing
- Creating new instances of cellular manufacturing
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 IRS 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 the computation and information gathering, and a Quality Assurance team that reviews deliverables and computations.
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