The credit is not limited to laboratories and pharmaceuticals. Any business developing new or improved products, processes, or software may qualify — across manufacturing, technology, engineering, food production, and many other industries.
What matters is not what industry you are in, but whether your team is engaged in activities that involve technical uncertainty, experimentation, and a process of evaluation. Below are the types of work that typically qualify.
The IRS evaluates qualifying activities using a four-part test. An activity must meet all four criteria to qualify for the R&D tax credit:
The activity must be intended to develop a new or improved product, process, software, technique, formula, or invention.
The activity must rely on principles of engineering, computer science, biological science, or physical science.
There must be uncertainty regarding the capability, method, or design of the product or process at the outset of the activity.
The activity must involve evaluating alternatives through modeling, simulation, systematic trial and error, or other methods.
We work with South Carolina businesses across these industries and others. If your company is engaged in technical development or process improvement, qualifying activities may exist.
Process development, tooling design, materials testing, product design iterations, and quality improvements.
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New architectures, algorithm development, AI/ML training, platform integrations, and security protocols.
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Drug discovery, clinical research support, formulation development, medical device design, and regulatory testing.
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Novel structural solutions, prototype development, environmental system design, simulation, and custom fabrication.
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New product formulation, process efficiency, preservation techniques, packaging innovation, and ingredient substitution.
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Crop yield improvement, equipment automation, irrigation systems, new building methods, and environmental solutions.
Discuss your activities →A brief consultation to evaluate your qualifying activities and outline what a well-supported engagement would look like.
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