Manufacturing R&D Tax Credits

Innovation plays a key role in manufacturing. It helps the industry become faster, more efficient, smarter, and greener. Manufacturing is also one of the top R&D tax credit claiming sectors.

Manufacturing R&D can range from bespoke digitally connected technologies such as smart sensors, robotics and AI. To new tools, jigs or equipment, to waste, quality, heating and safety improvements.

R&D tax credits offer an additional tax deduction of up to 130% (SME example) off all qualifying innovation spend (changing to 86% on all expenditure on or after the 1^st April 2023 (View R&D tax credit changes)).

17 Manufacturing R&D Tax Credit Examples

Qualifying manufacturing R&D projects must attempt to “resolve a scientific or technological uncertainty”. This is when a qualified professional cannot see a solution to a problem without exploratory testing and development.

The testing must attempt to fill a knowledge gap within the industry, and change or create a new product, process or service.

Manufacturing Product Improvements

Qualifying R&D product projects include the testing and development of new or modified:

Products or ranges
Performance, durability, weight, size, eco-friendliness etc. aspects of a product
Materials or fixings
Product finishes, dies or treatment
Products to meet new regulatory requirements, such as increased safety measures
Prototypes and samples

Manufacturing Process Improvements

Qualifying R&D process projects include the testing and development of new or modified:

Equipment, tools, jigs or moulds
Manufacturing and production line equipment
Technology infrastructures such as automations, robotics, additive, lean or precision manufacturing methods
Digital connectivity such as IoT, SMART sensors, data analytics, AI or immersive technology
Waste reduction processes
Eco-friendly manufacturing methods
Heating and ventilation technology
Factory safety improvements
Quality assurance or regulatory testing processes
Bespoke back-office or workflow systems and coding
Bespoke hardware/software or coding

Contact Amplifi, R&D Tax Credit Specialists

Get innovation and R&D tax credit advice and support from an expert team.

Manufacturing R&D Tax Credits

17 Manufacturing R&D Tax Credit Examples

Manufacturing Product Improvements

Manufacturing Process Improvements

Contact Amplifi, R&D Tax Credit Specialists

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