Chemicals

The U.S. is a global leader in chemical production. According to the EPA, as of 2019 there were more than 3,400 chemical manufacturing facilities in the U.S. In 2017, the industry had $765 billion in sales and invested almost $100 billion in research and development (R&D). Costs associated with new formula creation, production processes, scale-up procedures, and other innovations can be recouped through the R&D Tax Credit.

Employee wages, raw materials and supplies, cloud computing, and third-party contractor costs associated with R&D activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates. 

Examples of qualifying activities: 

• Creating and testing new formulations and products
• Experimenting with new additives or stabilizers to improve product quality
• Improving existing procedures to comply with required regulations, certifications, and standards
• Designing and implementing new equipment to improve manufacturing processes
• Creating new 3D printing technology using novel materials or compounds
• Testing and implementing environmentally-friendly manufacturing processes
• Evaluating applications for new chemical compounds
  

Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs? 

• C-Suite
• Chemical Engineers
• Chemists
• Environmental Engineers
• Laboratory Technicians
• Manufacturing Engineers
• PhDs / Postdoctoral Fellows
• Process Engineers
• Quality Assurance (QA) Personnel

Use our R&D Tax Calculator to estimate your potential benefit, and partner with Strike to claim your tax benefits with no up-front costs. Contact one of our experts today.