Injection molders and other plastics companies are eligible for research and development tax credits, but often they are unaware of it.
R&D tax credits are federal and state tax incentives meant to stimulate innovation, technical design, and product development and enhancement and keep the U.S. on the forefront of innovation.
These tax credits reimburse companies that develop new products, processes or inventions and offer a significant percentage back to the company for qualified research activities and qualified research expenses.
The R&D tax credit allows companies to realize tax savings, increase cash flow and stay competitive in the marketplace. In fact, many qualifying activities are considered day-to-day operations in the plastics and injection molding industry.
The R&D tax credit can provide a hidden but immediate source of cash for you from prior years, and it can significantly reduce your current and future year's federal and state tax liabilities.