R&D Tax Credit : Oil and Gas Industry
Initially, the R&D tax credit was primarily used for technological and biomedical research when it was introduced by congress over thirty years ago. Since its first introduction the tax credit has evolved, now it encompasses multiple industries including the oil and gas industry.
The R&D tax credit can be used to revolutionize the oil and gas industry. Both of these commodities are widely used throughout the world. They are used in our homes, our vehicles and in businesses. In order to continue developing the gas and oil industry innovation is required, which is where the R&D tax is proving to be essential in Texas and the rest of the United States.
Innovation Requires Time, Money and Resources
Further developments in the oil and gas industry are required in order to remain competitive in today’s markets. However, substantial research and development is needed, which can be costly. Thankfully the R&D tax credit is available for eligible companies, offering a lucrative investment that allows for forward thinking and the next steps in innovation within the oil and gas industry.
Technology for the gas and oil industry is one of the most complex, therefore it’s only fitting that the tax credit is now available to ensure the research and development is able to continue to grow. This is an industry that is vital to the American economy as oil and gas are used everyday around the world.
Qualifying for the R&D Tax Credit
There are certain activities that determine whether companies and organizations in this industry are eligible for the credit. Here is a short list to give you an idea of what activities are included:
- Offshore structure design
- Development and testing in a variety of areas including shutdown services, plug and abandonment solutions and turnaround
- Plant design regarding safety, chemicals, pollution control and pressurization
- Wastewater solutions
- Designing and improving drilling
- Combustion testing
- Improvements in drilling processes and design
- Testing and development including:
- Plug and abandonment solutions
- Shutdown services
The tax credit is there for you to use, the government wants you to use it so now is the time to take advantage and make it work for your business. Many businesses are missing out on this essential tax credit because they feel they don’t qualify, or that they simply don’t have the time or the resources to handle the application. We’re here to help. We will happily conduct a feasibility study, at no cost, to find out if you could benefit from the credit. Make the most of this opportunity to invest in your research and development and watch your business continue to grow and evolve.