Exploring Research and Development Tax Credits: Chemicals and Plastics
Companies in the chemicals and plastics industry are experiencing resurgent profitability and expanding their global operations. It is expected that they will also invest more in research and development (R&D). 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 production processes for new products, including Environmental Protection Agency compliance and testing
- Using new technology in the production process to increase yield or reduce waste, byproducts or environmental impact
- Creating specialized tools using new technology or developing prototype tooling
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.
For more information, see the attachment below.