PSS TAX · SERVICE 12
AN R&D TAX CREDIT SPOTTER GUIDE
The Simple Test
A new product isn’t automatically R&D, and aesthetic or commercial design alone isn’t enough.
Look beneath the product itself. R&D may be present where achieving its required technical performance, functionality, materials, construction or manufacturability involves genuine scientific or technological uncertainty.
Product Development & Industrial Design
Don’t rule it out just because…
Similar products exist
The product didn’t launch
The prototype failed
The final version looks relatively simple
Existing materials were used
The project began with a commercial/customer requirement
R&D vs probably not R&D
Potentially R&D
Developing and testing a substantially different internal structure to achieve the required strength at materially lower weight where established construction methods couldn’t achieve both requirements.
Probably not R&D by itself
Redesigning the appearance, dimensions or user features of an existing product using established materials and engineering methods.