New automotive R&D facility opens in Oregon

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The automotive commercial vehicle manufacturer, Daimler Trucks North America (DTNA) has officially opened its Oregon-based research and development facility.

The 87 acre, $18.7 million R&D facility consists of a state of the art test track, a brand new 32,000 square foot office that will be home to approximately 40 employees, a sizable workshop with 14 service bays for technicians to work and several driver lounges and conference rooms.

DTNA invested in the following R&D facility to solidify and validate itself as North America’s undisputed market leader and become a louder player in the realm of R&D. In addition, it is also hoped that the following facility will allow for DTNA to bring its innovative technology to the market faster than ever before.

DTNA’s president and CEO says he is excited for the future opportunities which lie ahead as a result of this significant R&D investment. The R&D projects to be carried out at the facility will allow for the company to become a more predominate player in the testing of product durability and reliability. In addition, the facility will also aid in the company’s future plans to test autonomous vehicles at the facility.

The location of Madras was specifically chosen because of its proximity to the company’s Portland headquarters. This allows the engineering team to travel by car to access the testing facility and will significantly save the company time and bring the engineers closer to the product.

The new test track at the facility is very similar to the one in Germany and Brazil and is specifically engineered to help DTNA determine a truck’s full service life in just six months.

While this R&D investment is an exciting opportunity for DTNA as a company, it is also an exciting time for Madras as a city. Having DTNA invest in Madras has shown to be a win-win for both parties and the city of Madras looks forward to supporting the undisputed market leader in the commercial vehicle industry.

If your company is currently or has recently invested in R&D, it may be eligible for an R&D tax credit. To receive an eligibility assessment and be guided through the R&D claim process, contact a Swanson Reed R&D Tax Adviser today. We look forward to speaking with you.

3D-Fuel Introduce a New Water-Soluble 3D Printing Filament

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HydroSupport is a new water-soluble 3D printing filament created by the manufacturing company 3D-Fuel. The filament takes between 12 and 24 hours to dissolve entirely, and can be expedited by using agitation and warm water, such as a heated ultrasonic tank. It is non-toxic, as 3D-Fuel attempt to create sustainable printing filaments that won’t harm wildlife or the environment. The company make various environmentally friendly 3D printing filament including coffee, beer, landfill and hemp filament.

Available in 1.75 and 2.85mm diameters, Hydro-Support is strong and the end result feels like PLA. It is clear in color and is vacuum sealed to protect it from moisture in transit.

3D-Fuel manufacture all printer filament in their own manufacturing facilities in Fargo, North Dakota and Moville, Ireland. The quality is tested extensively on a range of 3D printers including MakerBot, FlashForge and LulzBot and the width is carefully controlled using a multi-axis laser measurement system to help prevent issues caused by fluctuating diameter.

HydroSupport is designed as an easy-to-use support material for printing complex inner geometry, deep cavities or large extensions. It is allegedly easier to print with than other water-soluble filaments on the market, like PVA, which has high water retention that can make print jobs harder. Support structures are used when a design consists of complex shapes that can’t be printed on their own. They are then removed after the object is printed. However, removing the supports can be difficult and dangerous when requiring chiseling or chemical bathing. Alternatively, HydroSupport does not require manual removal and does not contaminate the environment with chemicals.

3D printing is a great indicator of R&D expenditure. If your business is using 3D printing, you are likely eligible for the R&D Tax Credit. The R&D Tax Credit allows a credit of up to 13% on eligible spending on new and improved products and processes. Get in touch with the experts at Swanson Reed to find out more.

Photo credit: westonhighschoollibrary via Foter.com / CC BY-SA

Aerospace and defense technology R&D center opens in N.D

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The leading American global aerospace and defense technology manufacturer, Northrop Grumman Corporation has opened a new research and development facility. The facility is located at the Grand Sky Aerial Systems (UAS) Business and Aviation Park in Grand Forks, North Dakota, which is dedicated to fostering autonomous systems and other capabilities.

Northrop Grumman’s new 36,000-square-foot facility serves as a hub for UAS R&D, operations and mission analysis, aircraft maintenance and training for pilots, operators and maintainers. The building is positioned in an anchor space along the alert pad at Grand Sky, which allows quick access to the runway of the adjacent Grand Forks Air Force Base for launch and recovery operations.

The research center will incorporate science, technology and math to achieve different solutions and bring together collaborative ideas. Grand Sky will allow for the collision of ideas so that software developments can become more advanced. The projects will revolve around future designing of UAS systems and making them more cognitive, which is the next generational leap in mission operations planning.

The R&D facility was initially completed late 2016 and officially opened April 21 2017. Northrop Grumman was the first tenant to sign a lease at Grand Sky and now have further construction plans to build a hangar to take advantage of the aviation park’s easy access to the Air Force base.

In addition to the Grand Sky facility, Northrop Grumman also operate a manufacturing site in New Town, North Dakota, which produces RF, fiber optic and wire harnesses for aircrafts including the Global Hawk and Boeing F/A-18.

Stakeholders of Northrop Grumman are excited to be able to officially begin their operations at Grand Sky and being able to cement their leadership in the development and use of autonomous systems. It is anticipated that the important work at Grand Sky will support the evolving needs of the company’s customers while advancing R&D in autonomous systems capabilities for today and the future.

To find out more about R&D and to find out whether your company could be eligible to receive the R&D Tax Credit, Contact a Swanson Reed R&D Tax Specialist today.

R&D Tax Incentive inspiring ground-breaking research

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3D printing has revolutionized hundreds of industries and has been particularly notable in the biomedical field. The technology is being used to make prosthetic limbs, replacements for bones, tendons, functional organ pieces and living human tissue for the testing and development of new drugs.

In 2007, Keith Murphy and Professor Gabor Forgacs from the University of Missouri founded the company Organovo. Organovo designs and prints functional human tissue for disease modelling and toxicology, human body implants and drug research and testing. The company also provides 3D printed tissue to academic facilities allowing future medics to get better training.

With the 3D printing market becoming increasingly more popular to invest into, particularly with the increase of government incentives for research and development, companies like Organovo can significantly benefit from substantial tax credits.

The federal R&D Tax Credit allows a credit of eligible spending for new and improved product and processes if qualified research meets the following four criteria:

  • New or improved products, processes or software
  • Technological in nature
  • Elimination of uncertainty
  • Process of experimentation

In 2015 the R&D Tax Credit became permanent, allowing the claiming of employee wages, cost of supplies, cost of testing, contract research expenses and costs associated with developing a patent. In 2016 start-up businesses could begin to utilize up to $250,000 credit in payroll taxes, which is particularly beneficial for 3D bio printing companies like Organovo, due to the long R&D time period of the projects.

The R&D tax incentive scheme has allowed for some ground breaking research achievements which will significantly benefit the wellbeing and treatment for people as well as improving future research. Organovo have been able to produce a 3D liver, named the ExVive Human Liver, which is being used to study predictive liver tissue-specific toxicity. The company has also created the ExVive Human Kidney which is being used to study nephrotoxicity due to drug responses. Additionally, the Missouri founded research company is also working on 3D printed tissue to be used as a source of therapy for patients with damage and disease to natural tissue.

Such ground-breaking findings pin point the significance of R&D tax credits in supporting innovation and development of revolutionary technologies. If you would like to find out more about the R&D incentive and whether your company may qualify for a tax credit, contact a Swanson Reed R&D tax specialist today, we look forward to speaking with you.

$100 Million invested into medical technology

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The American medical technology company, Becton Dickinson (BD), which produce more than two billion insulin syringes per year, have announced a $100 million research project to expand the company’s Nebraska research facility.

The investment will support new manufacturing equipment and technology to expand production for BD insulin syringes. Insulin syringes are used by approximately 40 percent of people with diabetes as part of their management regimen. This research investment will provide significant benefits to the diabetes population and underscores BD’s commitment to supply high-quality, industry-leading syringes to patients.

BD’s Nebraska facility is 350,000 square feet in size and was established in 1966. The facility houses more than 650 employees and manufactures 20 different products.

This is not the first time BD has significantly invested into research and development. In August 2016, after 60 years of running its facility in Utah, the company completed a $20 million facility upgrade. The upgrade allowed for more space and technology to produce IV catheters and valves, blood collection devices and surgical products.

The Utah facility was first purchased in 1956 and has since grown to 440,000 square feet in size and 1,200 employees. The research facility was the first to use renewable energy sources and later became landfill-free, where waste is reduced, recycled or converted into energy.

Companies like BD demonstrate the significant positive outcomes that result from investing in R&D. If you believe your company is incorporating research and innovation into its business activities, it may be eligible for an R&D tax credit. To find out more contact a Swanson Reed R&D Tax Advisor today for an assessment.

First American Autonomous Bus Project Starts in Nevada

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Proterra has begun America’s first autonomous bus test project in Nevada, one of the leading states in autonomous driving legislation. In partnership with the University of Nevada and its Living Lab Coalition, Proterra will develop and test the zero-emission vehicles in downtown Reno.

Unlike other programs, the project aims to develop a system for real world driving conditions. It will need to deal with difficult situations, including emergency response, varied road conditions and dense traffic. Implementing the project will be complex due to strict laws, which will differ from private autonomous vehicles.

The Living Lab program has three development stages; data collection, algorithm development and licensing and commercialization. First, the battery-powered bus will be driven by a human and will pick up data about the different city routes using sensors. Using this data, engineers will try different algorithms to see how they would perform autonomously, looking for ways to improve safety and predict traffic flow. The algorithms will aim to solve issues of vehicle perception, navigation control and path planning. The university will also focus on vehicle-to-vehicle and vehicle-to-infrastructure research. The end goal is to allow one of the programs to steer, under the watchful eye of a human supervisor.

Ryan Popple, CEO of Proterra believes that autonomous buses will become a common part of daily life and that they will be free to the public, with governments covering the costs with their budgets.

“As more and more communities take steps to integrate autonomous vehicles, we will continue to advance mobility solutions that best meet those evolving needs while embracing the highest safety standards on the market,” said Popple. New York, California and Arizona are also accepting applications for autonomous vehicle testing. While battery-powered transit vehicles represent just 1% of the market, Popple has claimed that electric buses are currently cheaper than diesel and CNG and could rule the transit bus market within the next decade.

Automated and battery-powered vehicles are disrupting the transportation industry. Projects like this have an exciting future but there is still much development to be done. Companies who are helping to solve issues in this space can benefit from the R&D tax credit. Contact Swanson Reed R&D tax specialists to see if your activities qualify.

Burlington Residents Can Receive Rebates of Up to $8,700 on Electric Vehicles

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WalletHub has named Vermont as America’s Greenest State for 2017 based on environmental quality, eco-friendly behaviors and climate-change contributions. The environmentally-conscious state has committed to producing 90% of its electricity from renewables as well as reducing greenhouse gas emissions by 75% by the year 2050.

Reducing the reliance on fossil-fueled travel will have a significant impact on this goal, as transportation makes up 47% of all greenhouse gas emissions in the state. Each vehicle produces around three and a half tons of carbon dioxide each year.

In an attempt to reduce emissions and make Burlington a “net zero energy city,” Burlington Electric have organized an electric vehicle incentive program. Burlington residents and businesses will receive a $1,200 rebate on the purchase or lease of a new electric-only vehicle valued at under $50,000 (plug-in and conventional hybrids do not qualify for the rebate.)

Darren Springer, Manager of Strategy and Innovation at Burlington Electric, said that the offer can be used along with federal tax incentives of up to $7,500. These incentives make the price comparable to a conventional fossil-fueled vehicle for those looking to buy a new car. Burlington Electric is working towards having the rebate applied automatically when a new electric car is purchased, rather than having to fill in extra paperwork. They expect that the rebate will help to pay for 240 electric vehicles over the next four years.

The city of Burlington currently produces 100% of its energy from renewable sources. 41% of its power comes from a biomass plant that turns organic waste into electricity, 25% is from hydroelectric plants and 34% comes from solar and wind farms.

A range of incentives are available for businesses undertaking renewable energy projects. One of these is the federal research and development (R&D) tax credit, which aims to assist companies who are developing newer and more efficient products and services. Get in touch with us at Swanson Reed R&D tax advisors to find out more.

Top States for Doing Business 2016

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How does your state rank for doing business? CNBC ranked all 50 states for business using a range of publicly available data.  They used a points-based system for each of the 10 categories of competitiveness.

Here are the results:

Workforce

Rating based on education level of the workforce, the numbers of available employees, and the states’ demonstrated abilities to retain college-educated workers.

Top 5

  1. Colorado
  2. Massachusetts
  3. Virginia
  4. North Dakota
  5. Arizona

Bottom 5

  1. Maine
  2. Missouri
  3. Hawaii
  4. Vermont
  5. Kentucky

Cost of Doing Business

Rating based on the competitiveness of each state’s tax climate, as well as state-sponsored incentives that can lower the cost of doing business. Utility costs can add up to a huge expense for business, and they vary widely by state. Also considered was the cost of wages, as well as rental costs for office and industrial space.

Top 5

  1. Indiana
  2. Iowa
  3. Mississippi
  4. South Dakota
  5. Kentucky

Bottom 5

  1. Hawaii
  2. California
  3. Maryland
  4. Connecticut
  5. Massachusetts

Infrastructure

Rating based on the vitality of each state’s transportation system by the value of goods shipped by air, waterways, roads and rail. The availability of air travel in each state, the quality of the roads and bridges, and the time it takes to commute to work was taken into account, as was the condition of each state’s drinking water and wastewater systems.

Top 5

  1. Indiana
  2. Tennessee/Texas
  3. Tennessee/Texas
  4. Georgia
  5. Minnesota

Bottom 5

  1. Rhode Island
  2. New Hampshire
  3. Maine
  4. Connecticut
  5. Hawaii

Economy

Rating based on economic growth, job creation, consumer spending, and the health of the residential real estate market. Each state’s fiscal health was measured by looking at its credit ratings and outlook, as well as its overall budget picture. Also considered was the number of major corporations headquartered in each state.

Top 5

  1. Texas
  2. Colorado
  3. Utah
  4. Florida
  5. Oregon

Bottom 5

  1. Mississippi
  2. Maine
  3. Alabama
  4. West Virginia
  5. Louisiana

Quality of Life

Rating based on livability, including several factors, such as the crime rate; inclusiveness, such as antidiscrimination protections; the quality of health care; the level of health insurance coverage and the overall health of the population. Also evaluated were local attractions, parks and recreation, as well as environmental quality.

Top 5

  1. Hawaii
  2. Minnesota
  3. Vermont
  4. New Hampshire
  5. Maine

Bottom 5

  1. Arkansas
  2. Missouri
  3. Oklahoma
  4. Louisiana
  5. Tennessee

Technology and Innovation

Rating based on support for innovation, the number of patents issued to their residents and the record of high-tech business formation. Also considered were federal health, science and agricultural research grants to the states.

Top 5

  1. Washington
  2. California
  3. Massachusetts
  4. New York
  5. Maryland

Bottom 5

  1. Mississippi
  2. West Virginia
  3. Wyoming
  4. Arkansas
  5. Louisiana

Education

Rating based on the number of higher-education institutions in each state, as well as long-term funding trends for higher education. Also evaluated were several measures of K–12 education, including test scores, class size and spending, as well as digital and lifelong learning opportunities in each state.

Top 5

  1. Massachusetts
  2. Minnesota
  3. Wyoming
  4. Illinois
  5. Virginia

Bottom 5

  1. Nevada
  2. Idaho
  3. Mississippi
  4. Arizona
  5. Alabama

Business Friendliness

Rating based on the freedom each state’s legal and regulatory frameworks provide for business.

Top 5

  1. New Hampshire
  2. South Dakota
  3. Virginia
  4. North Dakota
  5. Idaho

Bottom 5

  1. California
  2. West Virginia
  3. Illinois
  4. Mississippi
  5. Hawaii

Cost of Living

Rating based on cost of housing, food and energy.

Top 5

  1. Mississippi
  2. Kentucky
  3. Arkansas
  4. Alabama
  5. Tennessee

Bottom 5

  1. Hawaii
  2. New York
  3. Delaware
  4. California
  5. Connecticut

Access to Capital

Rating based on venture capital investments by state, as well as small-business lending on a relative basis.

Top 5

  1. Illinois
  2. North Carolina
  3. California
  4. Michigan
  5. New Jersey

Bottom 5

  1. Wyoming
  2. Vermont
  3. West Virginia
  4. Delaware
  5. New Mexico

Many US businesses can take advantage of the state and/or federal R&D tax credit. Please contact a Swanson Reed representative to find out what is available in your state and whether your business qualifies.

Virginia Tech University open food R&D center

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Virginia Tech University and Israeli food maker Strauss Group have started up an R&D agro/food tech program to help Israeli agriculture and food tech start-ups expand their activities in the US market.

Several Israeli companies were invited to make presentations to the Virginia Tech R&D team and Strauss Group in January. Later this year the staff of the selected companies will travel to Virginia to further their business development.

The R&D program will provide start-ups with funding opportunities, the chance to part take in business development meetings with experts from Virginia and facilitate excellent networking opportunities. Additionally, there is also the chance to test and trial different technologies, carry out consumer testing and allow for attaining necessary permits and regulation information.

Dr. Eyal Shimoni, vice president of Technologies at Strauss Group, says this project is about promoting developments of healthy food solutions and improving the quality of life for consumers worldwide.

Startups that specialize in food tech and agriculture are encouraged to apply to any future projects conducted by Strauss Group and Virginia Tech University. Possible future project focuses include sugar, salt and fat reduction technologies, improved nutrition methods and digital solutions, food safety, aquaculture, soil sciences and food process quality monitoring.

To find out whether your business activities qualify for the Research and Development Expenses Tax Credit, contact a Swanson Reed R&D Tax Specialist. 

Kentucky launches center for cancer and metabolism research

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The University Of Kentucky has been awarded an $11.2 million prestigious Centers of Biomedical Research Excellence (COBRE) grant to assist with the study of cancer and metabolism.

The grant was received from the National Institutes of General Medical Sciences and will fund the research and development project for the next 5 years.

The project aims to discover and prove a direct link between obesity and cancer. The need for research into this field is of high necessity, particularly for Kentuckians. Kentucky has disproportionately high incidences of both cancer and metabolic disorders and currently leads the nation in cancer deaths and obesity rates.

The University of Kentucky and its Markey Cancer Center have developed one of the strongest cancer research, prevention and treatment programs in the country. The awarding of the competitive grant is recognition of the University being a national leader in biomedical research.

Kentucky’s Center for Cancer and Metabolism (CCM) capitalizes on highly specialized institutional strengths in cancer and advancement metabolomics tools. This research focuses on the underlying mechanisms that link dysfunctional metabolism to cancer. Recent studies have shown that Mitochondria, the metabolic powerhouse of cells, can influence how aggressive a cancer becomes.

Research and development is at the core of economic and human development and it is why the University of Kentucky is the state’s instrumental change agent, health provider and economic engine.

The importance of the following R&D grant is largely significant to Kentucky, as the synergy and collaboration between researchers and clinicians to further studies in cancer could not be carried out without them.

To find out more about R&D or to determine whether your business is eligible for Kentucky’s .395 Research Facilities Tax Credit, contact a Swanson Reed R&D tax specialist.