Guest Commentator: Alexis Martin, CEO, EPSA USA @EPSAUSA
What are some emerging industries to watch that are fueling innovation by benefitting from the Federal R&D Tax Credit?
Most companies turn to banks, venture capital, or private equity firms when it comes to funding their innovation and research projects. While government incentives, such as the Research and Development (“R&D”) Tax Credit are available, they are often overlooked due to their complexities.
The Federal R&D Credit has continued to gain popularity and provide companies across a variety of industries with funding for innovation since it became permanent in 2015. Companies ranging from startups to larger corporations may take advantage of this powerful tax credit to fuel their innovation, research, and design projects.
The following industries continually emerge and fuel innovation in the US and are considered by EPSA USA as industries to watch:
- Information Technology and Software Development: Organizations involved in creating new and improved artificial intelligence, algorithms, programming languages, applications, and infrastructure.
- Advanced Manufacturing: Companies developing advanced manufacturing techniques, processes, and products across various manufacturing sectors; such as industrial, aerospace, automotive, electronics, food, etc.
- Biotechnology and Pharmaceuticals: Corporations that heavily conduct research and experimentation to develop new drugs, therapies, and medical technologies.
- Architecture & Engineering: Firms involved in an iterative process of design development consisting of researching alternative materials, designs, and techniques to meet client, municipality, site, and/or code requirements.
- Financial Technology (Fintech): Organizations developing technologies that improve and automate the delivery and use of financial services such as mobile payment systems, blockchain technology, robo-advisors, and alternative lending platforms.
As a result of leveraging the R&D Tax Credit, EPSA USA expects to discover many more emerging industries in the coming years.
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