Thermal Energy Storage Market Expected to Progress Immensely Between 2017-2015

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The thermal energy storage market is expected to grow due to the rise in demand of thermal energy. Solar and wind energy can be conducted on the same site but the storage of the energy made is the issue. The high cost of the storage is the only downfall to this innovation. Developed countries like the U.S. have an advantage as they are able to claim research and development (R&D) tax credits during the process of the development of this technology.

The adverse effects of greenhouse gases has helped the thermal energy storage market become more of a need. The issue with renewable energy is that there is not enough space to store the energy that is being made. Solar and wind energy are available infrequently meaning that the thermal energy storage unit is needed to make the energy usable and the creation of energy worthwhile.

The downfall of this market is the high cost of the development and installation of this product. Companies in the U.S. have the opportunity to apply for R&D tax credits in order to aid in the cost of this new technology with up to 14% in credit. If your company is improving or developing a new product, contact a Swanson Reed R&D Tax Advisor today to check your eligibility.

Electric Scooter Transportation On The Rise

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By the end of 2017 the electric scooter market is expected to be valued at more than $8B with the market then jumping 3.9% to $12B by the end of 2027. Research and development (R&D) is being conducted in order to find the best hybrid scooter, and the most efficient way to charge the scooters, taking it from hours to minutes.

Charging stations producing a direct current need to be readily available, allowing scooters to be charged in less than an hour. Engineers are currently trying to find a way to provide direct current as opposed to alternating current being sourced from overhead grid lines. The nature of this project is eligible for R&D due to the experimentation relying on the engineering of these charging stations, and the increased performance of this transportation.

The sales of electric scooters made up 2% of the total number sold worldwide in 2015. In order for this to change these charging stations need to be readily available. With the help of R&D Tax Credits this can happen.

If you would like to check your eligibility for R&D, contact a Swanson Reed R&D Tax Advisor today.

R&D Tax Credit Opportunities within the 3D Printing Industry

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3D printing is expected to grow more than 31% every year, surpassing $1.4 billion in revenue in the U.S. alone. Startup businesses have the opportunity to apply for research and development (R&D) tax credits if they are producing new or improved products or services, including the materials and software associated with 3D printing.

The most difficult task for a startup is deciding which business model to use, including their manufacturing model. Startups are tending to favour 3D printed products, as they are more responsive than traditional manufacturing methods – being readily customizable, with a fast turnaround time and low production costs. The large investment in 3D printing has resulted in huge progress over the recent years. However, it is widely recognized that there is still considerable progress to be made. The significant research and experimentation being undertaken in this industry means it is a prime candidate for R&D tax funding.

All businesses have the opportunity to apply for the R&D Tax Credit, which is backed by both the Federal and State governments. Now is the time for 3D printing businesses to take advantage of the possible 14% R&D Tax Credit. If your company is experimenting with new technology or products, contact a Swanson Reed R&D Tax Advisor today to see if you are eligible to claim.

Our Homes Could Be Heated From The Earth- Geothermal Startup Created in R&D Lab

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Dandelion Energy, Inc. is a geothermal startup that was created in Alphabet, the research and development (R&D) lab of Google’s parent company. Dandelion believes that it can lower Hudson Valley’s energy costs and decrease their carbon footprint.

Vice President of marketing Katie Ullmann has said that they have already scheduled the installation of the geothermal technology in a number of homes. The system “uses the earth to regulate the temperature of a home,” deriving 75% of the energy from the earth and the other 25% from electricity. Dandelion and Hudson Solar have partnered up, in hope that homes will be able to run on clean energy alone, with Hudson using solar to provide the remaining 25%.

The R&D Tax Credit is available to all industries where companies are developing new or improved products or services. Startups as well as large companies can claim up to 14% back for their R&D activities. Companies such as Dandelion and Hudson are eligible to benefit from these R&D credits.

If you would like to find out how your company could benefit from R&D Tax Credits, contact a Swanson Reed R&D Specialist today.

 

Coca-Cola is outsourcing its R&D to the public

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As consumers are constantly pushing for cleaner and healthier products, the beverage giant Coca-Cola is ramping up its efforts to uncover new non-sugar sweeteners for its portfolio of beverages and snacks. However Coca-Cola is taking a slightly different R&D approach with this project. The company has decided to outsource its R&D to the public to come up with a naturally sourced, low-calorie sugar alternative that mimics the taste of sugar.

Coca-cola has launched two sweetener campaigns on the HeroX platform, the first gives five individuals the chance to win $100,000 in prize money and the second is a grand prize of $1 million.

The first campaign is the ‘sweet story challenge’, which asks consumers around the world to submit written anecdotes and videos about their favorite methods of naturally sweetening foods and beverages in their cultures, communities or families.

The second challenge calls on researchers and scientists to find sugar alternatives that create the taste sensation of sugar when used in food and beverage. This challenge is the largest and offers the grand prize of $1 million which will be announced in October 2018.

The Chief Innovation Officer at Coca-cola believes that amazing ideas can come from anywhere and that it is vital to always search for newer and better ingredients. The two challenges are very much rooted in the company’s desire to make the drinks that consumers want to drink, and the company’s willingness to find sugar alternatives that help it deliver the great taste people love but in a health conscious manner.

Coca-Cola isn’t proving the be the only company to commit to reducing the amount of sugar in drinks, Dr Pepper Snapple and PepsiCo have also made similar pledges and companies such as KIND Healthy Snacks and Panera Bread have also been adamant about providing consumers with healthier options.

This inclusion of the public to finding solutions serves not only as a way to source new ideas but also to strengthen the brand and retain consumer trust.

Companies creating new knowledge on a global scale can apply for a federal or state R&D Tax Credit. To find out more about R&D and to assess your company’s eligibility, contact a Swanson Reed R&D Tax Advisor today. We look forward to speaking with you and guiding you through the R&D process.

Increase in R&D Activities Prove to Aid in Automotive Lithium Ion Battery Market

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The automotive lithium ion battery market is showing steady growth, thanks in part to an increase in research and development (R&D) funds provided by the R&D Tax Credit.

Many countries are trying to lower their dependency on gas and diesel for transportation, and focus more on sustainable fuels. This has been driving companies to look to alternative sources of energy. However, until recently there has been little advance in battery technology due to high production costs and a limited availability of the rare materials required. But with the rise in popularity of electric cars, the global lithium ion battery market is expected to increase rapidly; and R&D credits are fueling their development.

Along with R&D tax credits, there are a number of other incentives that the government is providing for this sector. The Internal Revenue Service (IRS) are giving tax credits of $2,500-$7,000 per electric vehicle purchased in the United States. with some states also providing rebates (e.g. $2,500 in California, $1,000 in Delaware and $5,000 in Colorado) towards the purchase of an electric vehicle.

These government incentives and the growing consumer desire to use clean fuels will continue to drive the demand for electric vehicles; and subsequently the demand for improved lithium ion batteries. R&D credits will prove invaluable in helping companies overcome the high cost of developing and improving new battery technologies.

Although the electric car market is still in its infancy, the projected future looks very promising, thanks in part to R&D Tax Credits. If you would like to find out how your company could benefit from R&D Tax Credits, contact a Swanson Reed R&D Tax Advisor today for an assessment.

New Hampshire’s High-Tech Industry on The Rise With $7 Million In R&D Tax Credits

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New Hampshire Governor Chris Sununu has issued a statement saying that $700 million will be given out to 200 New Hampshire businesses in 2017, meeting 92.4% of the total requested dollar amount for each company. This wasn’t all done by the Governor, but with the help of the Republican leadership and the Legislature, as well as the Senator Jeb Bradley who increased the Research and Development (R&D) tax credit from $2 million in 2008 to $7 million in 2017.

The reason for increasing the R&D Tax Credit for New Hampshire is the small economy of this area. Although most businesses are SMEs, they are high-tech focused and would benefit greatly from the increased R&D credits.

Governor Chris Sununu believes that the change in the R&D Tax Credit will send out a message that New Hampshire is now “open for business.” He is hoping that this change will promote a business-friendly environment that will spark company growth and job creation, thereby benefiting everyone.

The New Hampshire Legislature enacted an R&D tax credit in 2007 for businesses that paid taxes to the state of New Hampshire. In 2007 the Legislature designated $1,000,000 to be available for the next five fiscal years. In 2013 that was changed and a new Bill was passed changing the amount to $2,000,000, which was subsequently increased to $7,000,000 in 2015 (effective as of July of 2017).

Sununu believes that R&D is key to driving the future investment of businesses in New Hampshire. If you would like to find out how your business could benefit from R&D tax credits, contact a Swanson Reed R&D Tax Advisor today.

R&D Tax Credit Boosts Growing Material Handling Industry

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The demand for material handling and logistics industry has had a continued upward trend in today’s global world. The need for global supply chains and distribution of goods through advanced technology has employed over 700,000 in the material handling market, according to recent figures, and consumption greater than $156 billion in the U.S. In 2013, business logistics accounted for 8% of the U.S.’s GDP. This growth could accelerate with the Research and Development (R&D) Tax Credit. With recent legislative changes, the credit can now be claimed by more businesses and includes more eligible supply costs; a change that may increase a business’ claim by up to ten times.

What qualifies as “research and development” for credit eligibility? There are a number of qualifying activities, including developing material handling systems, designing robotic systems, manufacturing motor systems, or developing overhead material handling solutions, to name a few. The R&D Tax Credit is permanent and many states also have a similar credit which can be added to the federal claim.

Previously, small and medium businesses were often ineligible to claim the R&D tax credit due to the alternative minimum tax (AMT). At the start of the 2016 tax year, the AMT barrier was removed allowing all businesses to benefit from the incentive. Other regulatory and legislative changes have expanded the credit further, allowing companies to be rewarded for innovative solutions such as solving a technical problem on a factory floor or improving a distribution process.

Design improvements through automated systems and innovative technologies can pay off for companies who take advantage of the R&D tax credit. A material handling company which improved designs to an existing industrial system received $596,000 through federal and state R&D credits. These incentives help encourage companies to invest in automated solutions and advance the material handling industry.

If you think your company’s innovative solutions or designs could qualify for the R&D Tax Credit, contact a Swanson Reed Tax Advisor for a free assessment.

 

Chinese Made Tires- Foreign Investment with Georgia Tire Company

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Sentury Tire, a Chinese based tire manufacturer, is building a world class factory in Georgia, covering 450 acres in LaGrange. Once the factory is complete they hope to have three shifts a day with more than 100 workers on each shift, 100 specific maintenance positions, manual logistics employees, sales staff, as well as their own R&D center with 100 employees.

This new facility will present many opportunities for Sentury Tire North America (STNA), who are planning to optimize their manufacturing process and use new technology to streamline production. STNA plans to build and purchase 24 new machines for the factory and are keen on claiming R&D tax credits to help fund future technology acquisitions. They are also looking at different methods to minimize shipping costs and packaging time. These activities present opportunities to claim R&D tax credits, which can be used to provide further funding for development.

If you would like to find out how your company could benefit from R&D tax credits, contact a Swanson Reed R&D Tax Advisor today.

Increased 3D Printing in STEM Initiatives Assisted by R&D Tax Credit

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Science, technology, engineering, and mathematics (STEM) initiatives have recently turned to 3D printing to build tools and equipment in response to the increasing demand for laboratory equipment. Tools are built faster and more cost-effective when created using 3D printers. The Research and Development (R&D) Tax Credit aids in this type of work by encouraging innovation.

The R&D Tax Credit, introduced in 1981, allows up to 13% credit for eligible spending on project and product innovations. Research qualifies by meeting the Four-Part-Test:

  1. New or improved products, processes, or software
  2. Technological in nature
  3. Elimination of uncertainty
  4. Process of experimentation

The R&D Tax Credit was made permanent by President Obama on December 18, 2015. Costs such as labor, supplies, testing, research expenses, and developing a patent are all eligible under the R&D Tax Credit. Startup businesses have an allowance of $250,000 per pay year in payroll taxes that they can use the credit against.

The vast array of products created through 3D printing have a direct benefit to STEM initiatives. These benefits range from materials including plastics, steel, copper, and ceramics, to equipment such as beakers, test tubes, pulleys, microscopes, and custom add-on components for equipment and instruments. As well developing an extensive range of products, there are also cost-saving benefits to 3D Printing. A recent study by the Public Library of Science found over 97% cost reductions using 3D printed optics equipment.

Scientists and engineers are also turning to open source models in which designs are shared for 3D printed lab equipment. The model originates from computer science where programmers made source code publicly available for use or modification from the original design. In 3D printing, exact replicas or modified designs are being created using this open source concept which promotes evolution and improvements along the way.

Scientists and engineers using 3D printing in innovation may be eligible for R&D Tax Credits. To find out if your project qualifies or to learn more about the program, contact a Swanson Reed Tax Advisor.