Industries Service Area
R&D Tax Credit Industries in Ohio
Many businesses across Ohio perform technical development, engineering design, testing, and process improvements as part of normal operations. These activities often occur when companies improve products, refine production systems, develop software, or solve engineering challenges. When work involves technical uncertainty and structured experimentation, it may align with the federal Research and Development (R&D) Tax Credit under IRS Section 41.
RCG works with companies throughout Ohio to review technical activities and prepare documentation that supports accurate R&D Tax Credit filings. The firm’s team includes CPAs, engineers, architects, tax specialists, and technical professionals who evaluate development work and determine whether it aligns with federal research criteria.
Organizations located in Columbus, Cleveland, Cincinnati, Dayton, Toledo, Akron, and other Ohio cities frequently perform technical work across many industries. Many companies are surprised to learn that the engineering, testing, and development activities they already perform may meet the requirements for the federal R&D Tax Credit.
Industries That Commonly Perform Qualified R&D Activities
Companies in many sectors perform engineering and technical development while designing products, improving processes, or testing new technologies.
| Industry | Example Development Activities |
|---|---|
| Manufacturing | Product design, production improvements, materials testing |
| Software and Technology | Software development, system integration, performance optimization |
| Engineering | Structural design, mechanical systems development, simulations |
| Biotechnology and Life Sciences | Laboratory research, biological testing, medical innovation |
| Aerospace and Defense | Aircraft systems design, materials testing, engineering analysis |
| Automotive | Vehicle systems development, safety testing, materials evaluation |
| Food and Beverage Manufacturing | Product formulation, shelf life testing, packaging improvements |
| Chemicals and Materials Science | Chemical experimentation, compound development, materials testing |
| Agriculture and Agritech | Crop technology development, irrigation systems, agricultural automation |
| Construction and Architecture | Structural engineering, building system development |
| Medical Devices | Device prototyping, materials testing, engineering development |
| Electronics, Robotics and Hardware | Circuit design, embedded systems, robotics engineering |
Each industry performs development differently, but many projects share similar characteristics such as testing alternatives, evaluating performance, and solving technical problems.
R&D Tax Credit Industries We Support
RCG works with companies performing development across a wide range of industries. The pages below explain how technical activities in each sector may align with R&D Tax Credit standards.
Manufacturing
Manufacturing companies frequently improve production systems, evaluate materials, and refine product designs through engineering analysis and testing.
Software and Technology
Software development often involves creating new applications, improving system architecture, integrating APIs, and testing performance or security improvements.
Engineering
Engineering organizations frequently design systems, develop prototypes, and perform technical analysis while solving structural or mechanical challenges.
Biotechnology and Life Sciences
Biotechnology and life science companies may conduct laboratory testing, biological experimentation, and scientific analysis while developing new technologies.
Aerospace and Defense
Aerospace engineering may involve aircraft systems design, advanced materials testing, and performance analysis under demanding operating conditions.
Automotive
Automotive engineers often develop components, evaluate vehicle systems, and test materials to improve safety, efficiency, and reliability.
Food and Beverage Manufacturing
Food manufacturers may test product formulations, evaluate shelf life, and analyze packaging or production improvements during product development.
Chemicals and Materials Science
Chemists and materials scientists often perform laboratory experiments, analyze chemical reactions, and evaluate materials performance.
Agriculture and Agritech
Agricultural development may involve crop technology testing, irrigation system design, and evaluation of agricultural monitoring systems.
Construction, Architecture and Building Sciences
Engineering and construction teams often evaluate building materials, analyze structural performance, and develop energy efficient building systems.
Medical Devices
Medical device development often involves device prototyping, materials testing, and engineering analysis to improve safety and performance.
Electronics, Robotics and Hardware
Electronics engineers frequently design circuit boards, develop embedded systems, and test automation technologies.
How the IRS Defines Qualified Research
To qualify for the federal R&D Tax Credit, activities must meet the IRS Four Part Test.
| Requirement | Meaning |
|---|---|
| Permitted Purpose | Work improves functionality, performance, reliability, or quality |
| Elimination of Uncertainty | Teams resolve uncertainty related to design capability or technical methods |
| Process of Experimentation | Work involves testing alternatives or evaluating results |
| Technological in Nature | Laboratory research, biological testing, medical innovation |
| Aerospace and Defense | Activities rely on engineering, computer science, biological science, or physical sciences |
Many organizations perform these types of activities during product development, engineering design, and technical problem solving.
R&D Development Occurs Across Ohio Industries
Technical development occurs across many industries throughout Ohio. Companies operating in Columbus, Cleveland, Cincinnati, Dayton, Toledo, and Akron frequently design products, test materials, develop software systems, and evaluate engineering solutions.
Because these activities often occur during normal operations, many companies do not initially recognize that their work may align with federal R&D credit standards.
Request an R&D Tax Credit Evaluation
If your company develops products, improves processes, tests materials, or solves engineering challenges, your activities may involve work that aligns with federal R&D Tax Credit requirements.
RCG reviews development activities and prepares documentation that supports accurate R&D Tax Credit filings.
Contact RCG to discuss your development activities.
Frequently Asked Questions
What industries qualify for the R&D tax credit?
Many industries may qualify when companies perform engineering, development, testing, or experimentation. Examples include manufacturing, software development, engineering, agriculture, and technology.
Do companies need a laboratory to qualify?
No. Many qualifying activities occur during normal product development, engineering design, or process improvements.
Can small businesses qualify for the R&D credit?
Yes. Small and mid sized companies may qualify when they perform development activities that meet the IRS research criteria.
Do improvements to existing products qualify?
Improvements may qualify when teams evaluate alternative designs or perform technical testing.
What is the first step to determine eligibility?
The first step is reviewing development activities to determine whether they may align with the federal R&D credit criteria.
Contact RCG
Property owners and developers across Ohio who would like to evaluate whether a Cost Segregation analysis is appropriate may contact RCG to review project details.
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