Enhancing Your ROI on Packaging Design by Taking Advantage of the Research & Development Tax Credit

Does your company design, develop and/or manufacture packaging-related products in the U.S.? Do any of your employees experiment with new materials, equipment, designs, automation technologies or packaging systems? Do you invest resources toward optimizing production techniques or processes? There are hundreds of examples in the packaging design industry: 3D Printing, developing tools to conduct permeation analysis and testing, improved designs, enhancing the readability of labels and developing product safety enhancements. If any of this describes what you do, your company may qualify for Research and Development (R&D) tax credits, an often overlooked and misunderstood substantial opportunity for packaging manufacturing industry taxpayers.

Since the industry is fueled by innovation and the ongoing quest for better ways of making all types of products, many of the developmental activities performed by companies in the industry may qualify for R&D tax credits. R&D tax credits are available to all manufacturing and distribution businesses that produce new, improved, or technologically advanced products, processes, methodologies, or materials. In addition to “revolutionary” research activities, in many cases, the credit may be available if the company has performed “evolutionary” research activities such as investing time, money, and resources toward improving its products and processes.

The R&D tax credit is a tax incentive intended for businesses of all types and sizes to conduct R&D within the U.S. that will lead to new, improved, or technologically advanced products, processes, principles, methodologies, or materials. A tax credit can be used to offset income tax liabilities on a dollar-for-dollar basis, thereby lowering a company’s effective tax rate and increasing cash flow and refueling your innovation and design initiatives.

Our roundtable discussion at PDMC 2016 will provide an introduction to opportunities related to the Research & Development tax credit. We will discuss a brief history of the credit and define the components of the credit. Our presenter will share specific industry examples that are common to the credit, help participants understand the qualification process, discuss the four-part test including how different activities qualify for the credit.

The discussion will cover the following topics providing you with an understanding of how to access the opportunity at your company and capitalize on the R&D tax credit:

  • History and background of the R&D tax credit
  • Qualification Criteria Examples of qualifying activities
  • What expenses can be included in the calculation?
  • Case Studies as they relate to the Packaging Design industry

This topic and many others will be discussed at the Luncheon Roundtables taking place at the Package Design Matters Conference from January 20 – 22 in Bonita Springs, Florida. Check out the full agenda.

Info provided courtesy of PDMC Supporting Sponsor, Anchin, Block & Anchin LLC