Could the Improvements You’re Already Making Qualify for an R&D Tax Credit?
Your team is constantly improving products, processes, materials, equipment and manufacturing methods. Some of that technical work may potentially qualify for the federal Research & Development Tax Credit.
IWP Solutions has partnered with R&D Ledger to help wood manufacturers identify and better document potential R&D activities for review by their CPA or tax professional.
You May Already Be Doing R&D
Research and development doesn’t always happen in a laboratory. In manufacturing, R&D can happen every time your team works through technical uncertainty to create or improve a product or process.
What Could R&D Look Like in Wood Manufacturing?
Every situation is different, but technical work in areas like these may warrant further evaluation.
Product Development
Developing new products, components, construction methods or product features.
- New product designs
- New joinery or construction approaches
- Prototype development
- Performance improvements
Process Improvement
Testing new approaches to improve manufacturing efficiency, capacity, quality or consistency.
- New production methods
- Workflow improvements
- Equipment modifications
- Automation integration
Materials & Finishing
Experimenting with materials, coatings, adhesives, finishing systems or application methods.
- New coating systems
- Adhesive testing
- Substrate evaluation
- Cure-time improvements
Technical Problem Solving
Working through technical uncertainty by evaluating, testing and comparing alternatives.
- Tooling development
- Quality improvements
- Engineering changes
- Alternative manufacturing methods
Not every manufacturing improvement qualifies as research and development. Routine maintenance, ordinary troubleshooting, cosmetic changes or simply purchasing new technology do not automatically qualify. Eligibility depends on the specific facts of each project and should be evaluated by a qualified tax professional.
Doing the Work Is Only Part of the Equation
One of the biggest challenges with the R&D Tax Credit is documenting what actually happened.
Months later, it can be difficult to reconstruct:
- What technical problem were we trying to solve?
- What alternatives did we consider?
- What did we test?
- What worked — and what failed?
- Who worked on the project?
- How much time did they spend?
- What materials or outside resources were involved?
- Where is the supporting documentation?
Introducing R&D Ledger
A Better Way to Document Potential R&D
R&D Ledger provides a structured way to capture technical projects, supporting evidence, people and costs while the details are still fresh.
Capture the Project
Document technical challenges, objectives, uncertainties, alternatives and work performed.
Record Testing & Evidence
Organize test results, failed attempts, photos, drawings, design documents, notes and other evidence.
Connect People & Costs
Associate employees, contractors, supplies and project-related expenses with the work performed.
Prepare for CPA Review
Create organized records to help your tax professional evaluate potential eligibility and filing treatment.
Video Coming Soon
See R&D Ledger in Action
See how R&D Ledger helps companies turn everyday technical projects into organized documentation for review by their tax professionals.
From project details and experimentation to people, costs and supporting evidence, R&D Ledger creates a structured process for documenting potential R&D activity throughout the year.
Start With the Work You’re Already Doing
You don’t have to begin with tax forms. Begin with a project.
Think about a recent initiative where your team:
- Developed something new
- Changed a manufacturing process
- Tested multiple alternatives
- Improved performance or reliability
- Experimented with materials or finishes
- Designed new tooling or equipment
- Worked through a technical uncertainty
Those are the kinds of conversations IWP Solutions already has with manufacturers every day.
Let us help you take a closer look at the technical work happening inside your operation.
Try R&D Ledger Free for 7 Days
See how simple it can be to begin documenting your technical projects.
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You’re Already Investing in Improvement. Make Sure You’re Documenting It.
IWP Solutions helps wood-industry leaders improve products, processes, manufacturing systems and business performance.
Through our relationship with R&D Ledger, we can also help clients begin recognizing and documenting technical projects that may warrant evaluation for the R&D Tax Credit.
Have a project in mind? Let’s talk.
Important: R&D Ledger is a documentation platform and does not provide tax, legal or accounting advice. Use of R&D Ledger does not establish eligibility for the R&D Tax Credit. Your CPA or qualified tax professional is responsible for evaluating activities and expenses, applying applicable tax law, determining eligibility, substantiation, calculations, elections and filing treatment.
Questions about R&D Ledger? info@rndledger.com | 512-639-3110