An overlooked source of cash for New York manufacturers is the Research and Development (R&D) tax credit. This incentive helps companies to grow by reducing its tax liability for qualified R&D expenditures.

The R&D Tax Credit is available for companies engaged in the
 development of new or improved products, processes, or software.

R&D credits may be applied to taxes due or to future tax liability, and they may be retroactive for three years in addition to the current year and carry forward for twenty years! These credits can additionally be used to reinvest in the company.

Qualifying costs include:

  • Tasks performed by Engineering, Executive Leadership, Legal, Sales Engineers,
    Operations, and IT
  • Cost of supplies
  • Third-party contractor fees

First enacted in 1981, the R&D Credit is now permanent and expanded with new provisions that enable more companies to monetize the credit.  The R&D Tax Credit helps stimulate U.S. businesses. This is particularly helpful for New York where there is an increased focus on innovation in manufacturing, design, and technology.

R&D Tax Credit Case Studies (PDFs)

AM&T Webinar on R&D Tax Credits (2/10/2021)