PSS TAX · SERVICE 14
AN R&D TAX CREDIT SPOTTER GUIDE
The Simple Test
R&D may be taking place where an automotive, transport or specialist vehicle business is trying to achieve a new or appreciably improved technological capability and experienced engineers cannot readily determine whether, or how, the required performance can be achieved using existing technology and established methods.
It doesn’t have to mean developing an entirely new vehicle. R&D can arise when businesses are trying to overcome the limitations of existing vehicles, components, materials, powertrains, control systems or engineering methods to improve performance, efficiency, reliability, safety or functionality.
Automotive & Specialist Vehicles
Don’t rule it out just because…
The vehicle or platform already existed
Most of the components were commercially available
The development was for a customer’s particular requirement
The business modifies vehicles rather than manufactures them from scratch
The final solution combined existing technologies
Several prototypes or approaches failed
The R&D was only one part of a much larger vehicle build or conversion
If you’re unsure, don’t try to determine eligibility yourself. Refer it to PSS Tax and we’ll assess it.
R&D vs probably not R&D
Potentially R&D
Developing and testing a new battery and thermal-management configuration for a specialist electric vehicle where existing systems couldn’t achieve the required range, operating temperature and performance within the available weight and packaging constraints.
Probably not R&D by itself
Installing a commercially available battery, motor or vehicle component according to the manufacturer’s established specifications without significant technological uncertainty.