for the R&D Tax Credit
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R&D Tax Credit
PRODUCTS AND PROCESSES
R&D Tax Credits for the Tool & Die Casting Industry
Refunds are available for companies performing research within the Tool & Die Casting Industry. The research credit provides dollar-for-dollar cash savings each year for companies performing activities related to the development of new or improved products and processes. These benefits could provide much needed cash to hire additional employees, increase R&D, expand production facilities, etc.
Many companies involved with tool & die casting are unaware that their efforts within designing and developing their products can yield a large amount of research credits. Examples of R&D activities related to the industry as well as potentially qualifying job titles are listed below.
Examples of Qualifying R&D Activities
- Automating machining processes to optimize die casting times as well as reduce labor costs
- Designing, developing, and testing prototypes
- Developing operational efficiencies with the molding process
- Developing safety measures within the tool & die casting process
- Drafting new parts on computer-aided design (CAD) programs to model product specifications and functionalities
- Improving machining processes to ensure consistency among products
- Testing alternative or new raw materials to work with to improve product performance and useful life
Potentially Qualifying R&D Job Titles
- Design Engineer
- Die Cast Engineer
- Computer Numerically Controlled (CNC) Programmers
- Mechanical Engineer
- Manufacturing Engineer
- Process Engineer
- Quality Engineer
AMT Offset
For tax years beginning after December 31, 2015, eligible small businesses (those with $50 million or less of gross receipts) may claim the research credit against AMT liability.
Up to $250,000 in Payroll Tax
Qualified start-up companies may elect to use up to $250,000 of the research credit against payroll taxes. Treasury Regulations have substantially broadened the range of taxpayers who are eligible for the credit. Start-ups to publicly traded businesses who were previously unable to realize a benefit from this lucrative tax credit should reassess their eligibility.
Estimate Your Benefits with our FREE Calculators
Use our calculators for an estimate of state and federal R&D tax credit benefits or to determine if you can offset payroll tax using the R&D tax credit. It's easy to use and free. If at any time you have questions, contact us. We are here to help you realize your maximum tax benefit.
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Research and Development Tax Credit Insights
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Key Changes in Accounting Method Procedures for Section 174 Research Expenditures
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KBKG Tax Insight: IRS Updates Form 6765 to Claim R&D Credit
06/25/2024By Jonathan Tucker | Principal, Research & Development Tax Credits On June 21, 2024, the IRS released an updated draft form 6765 – Credit for Increasing Research Activities, the tax form taxpayers must file with their tax returns to claim the R&D tax credit. This revised draft provides much-needed relief for taxpayers by reducing the … Read More
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06/20/2024By Jonathan Tucker | Principal, Research & Development Tax Credits The IRS issued new guidance around amending for R&D tax credit refunds postmarked as of June 18, 2024. This guidance reduces the documentation requirement to be submitted for amending by removing two previously required items. KBKG Insight: With just three documents needed to submit the … Read More
KBKG Tax Insight: Tax Court Denies R&D Credits for Engineering Firm
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