R&D Tax Credit: Engineering & Manufacturing
R&D in Engineering and manufacturing may be present in the digital design and computer modelling, work to the building and testing prototypes and ongoing analysis, further testing and developing.
Examples of Eligible R&D activities and questions to consider:
- Have you developed a new or changed product or process that has characteristics substantially different from those currently available (i.e. more efficient, robust, flexible, less expensive, etc.)?
- Have you developed any prototypes? If you were to develop subsequent models, would they have new and different characteristics?
- Did you have any failures in product or process development or improvement?
- Have any of your products or processes taken more time to develop than you expected?
- Have you used or combined technologies in new ways?
- Integrating new materials to improve product performance and manufacturing process;
- Streamlining manufacturing process through automation;
- Developing a pilot plant to investigate concept of a new process to increase throughput.
- Developing processes for scale up to full production.
Sectors of Engineering that may qualify:
- Aerospace engineering
- Automotive engineering
- Biochemical engineering
- Construction engineering
- Infrastructure engineering
- Chemical engineering
- Civil engineering
- Electrical engineering
- Green engineering
- Geotechnical engineering
- Marine technology engineering
- Engineering relating to materials
- Mechanical engineering
- Petrochemical engineering
- Plant engineering
- Power engineering
- Process engineering
- Software engineering
- Telecoms and network engineering
- Transportation engineering
Expenditures can include wages, eligible materials and software, apportioned utility and eligible third party costs.