7 Reasons to Use the R&D Tax Credit on a New FormBalancer
Invest your R&D Tax Credit on a New FormBalancer
Thanks to the newly revised Research and Development (R&D) Tax Credit, thousands of companies — including small and medium-sized businesses — are reducing their tax liability by investing in new equipment and technologies.
In other words, if you’ve been thinking about investing in new metal forming equipment or technologies, now’s the time.
But first, what is the R&D Tax Credit? The R&D credit can offer small, mid-size, and large companies a reduction in federal tax liability and a source of cash through reduced federal tax payments (The CPA Journal). This government-sponsored tax incentive rewards companies for conducting research and development activities domestically. The credit was implemented to encourage and incentivize innovation and to keep technical jobs here in the United States.
The federal R&D Tax Credit provides a financial incentive for businesses in the United States to develop new products or improve upon existing products or trade processes. According to Alliantgroup, the federal government provides an annual subsidy of $12 billion to thousands of large and small American businesses for their R&D activities.
Why should you take an R&D Tax Credit? There are plenty of reasons, but some of the most important reasons to take the credit are:
- Improving your product and/or services.
- Reducing your company’s tax liability.
- Improving cash flow.
What companies qualify for the R&D Tax Credit? The guidelines are pretty accommodating but we encourage you to consult with an R&D Tax Credit expert to make sure everything’s on the up-and-up. Generally speaking, if your company does any of the following — and most of the companies we partner with do — then it likely qualifies for the R&D Tax Credit:
- Develops or designs new (or improved) products or processes.
- Enhances existing products or processes.
- Develops or improves upon existing prototypes and software.
Here are seven reasons why we think you should use your R&D Tax Credit to invest in brand new equipment and technology. Like, for example, a FormBalancer — the universal sheet metal and tube forming machine from FluidForming Americas.
Reason #1: It’s the smart thing to do
The R&D Tax Credits can cover monthly payments and may even cover an outright purchase. An investment in better, faster equipment is always a smart move.
Reason #2: Improve quality
Improve product quality and gain a competitive edge in the market with a metal forming process that’s 99.996% accurate and repeatable.
Reason #3: Streamline processes
The right metal forming equipment can increase your capacity for innovation, encourage product iteration, reduce constraints, and streamline processes. And the R&D tax credit makes it easier for you to make big investments in the future of your business.
Reason #4: Lower total cost of ownership
FluidForming consumable and maintenance costs are much lower than the costs associated with traditional hydroforming or die stamping presses. Why? Because FluidForming’s FormBalancer presses are bladder-free and rely on tap water as the forming force instead of costly and environmentally harmful hydraulic oils.
Reason #5: Lower overall production costs
FormBalancer owners enjoy lower production costs, too. Thanks to dramatically reduced tooling costs, the elimination of sheet metal fixturing, and minimal tooling and equipment wear, production costs are a fraction of the cost of legacy metal forming methods. Using your R&D tax credits to lower costs is a win-win.
Reason #6: Reduce downtime
Is your metal forming equipment starting to show its age? Equipment breakdowns are costly. A survey conducted by Information Technology Intelligence Consulting found that 98% of businesses reported that a single hour of downtime costs over $100,000. 81% noted that 60 minutes of downtime costs their business over $300,000 and 33% reported that one hour of downtime costs their firms $1 million to $5 million!
Reason #7: 4-in-1 metal forming capabilities
FormBalancers give more bang for your buck. FluidForming’s universal sheet metal and tube forming machines, FormBalancers, are compact, computer-controlled, semi-automated, and network-connected. Because of their lightweight and efficient design, special foundational requirements are not necessary. They’re easy to use, too.
Are you ready to dream big and use your R&D Tax Credit? Good, because we’ve got a FormBalancer with your name on it.
It’s time to stop designing for tomorrow with yesterday’s metal forming technologies and invest in the future. Find out how the R&D tax credit and our 21st Century technology can revolutionize the way your company dreams, innovates, and manufactures. Contact FluidForming Americas today at (800) 497-3545 or email us at email@example.com.
FluidForming Americas, Inc. is a member of the Precision Metal Forming Association and is AS9100 Rev D, ISO 9001:2015 certified.