If you turn to automation systems for your business, you may be eligible for an R&D tax credit. So says Greg Knarr, an expert on the R&D tax credit for the alliantgroup.
In an article for Industry Week, he said the credit can offset much of development and implementation costs for automation systems and provide a source of capital for the acquisition of additional technical talent.
“Unfortunately, even though most businesses that implement automation systems are eligible for the credit, only about 5 percent actually take the time to go through the process of claiming it,” he says. “This is why any business owner seeking an edge over the competition and different avenues for capital is strongly encouraged to speak with their tax professional about what government incentives they are either potentially overlooking or not utilizing to the fullest.”
Activities that qualify include:
- designing custom automation machinery and robotics for both discrete and process manufacturing operations;
- implementation of automated systems such as PLC, HMI, Information Systems, motion/process control, robotics, RFID, and 3D laser scanning;
- streamlining and analyzing data acquisition through visualization technology and instrumentation;
- controlling field and factory operations remotely using mobile instrumentation, virtualization and industrial wireless networks; and
- simplifying control sequences and improving efficiency through systems integration.
He also presents three real-world examples of how companies have utilized the tax credit in just this way.