Can Tool and Die Makers Qualify for the R&D Tax Credit?

OMA Connections Partner, Tax Credits Group, says it is often asked if tool and die shops can qualify for the R&D tax credit.

The short answer—absolutely.

The longer answer to whether your work is eligible for the R&D tax credit requires a deep dive into IRC § 41, which outlines a “4-Part Test” which all jobs or projects must meet to qualify for the credit.

Here’s a look at each of these four parts as they relate to the tool and die Industry.