Boating and marine manufacturers are often eligible for the R&D tax credit, but many fail to capture its full value. Common mistakes include assuming daily innovation doesn’t qualify, overlooking prototypes, and relying on advisors unfamiliar with marine industry innovation. This blog highlights the most frequent errors and how boating companies can avoid them.
The marine and boating industry thrives on constant innovation:
Despite this innovation, many companies miss out on the R&D tax credit for boating companies. Why? Because they fall into common traps that prevent them from claiming or maximizing the benefit.
Many manufacturers view their engineering work as “standard.” But solving technical challenges (like reducing drag, increasing efficiency, or improving durability) is exactly what the IRS considers a qualified research activity.
If your team is experimenting, testing, or refining, it may be R&D even, if it feels like daily work.
Prototyping is a hallmark of R&D. From early-stage hull models to engine stress tests, these iterative processes qualify. Too often, marine companies fail to log these activities and leave substantial credits unclaimed.
Not all CPAs are fluent in the details of the R&D tax credit, especially in niche industries like marine manufacturing. This often leads to:
The best approach? Work with specialists who understand both IRS compliance and marine innovation.
Many boating companies don’t realize they can look back up to three years to capture credits they missed. Skipping retroactive claims means leaving tens or hundreds of thousands of dollars on the table.
You don’t need to invent the next generation of yachts to qualify. Incremental improvements (think: stronger materials, better fuel efficiency, or more reliable onboard tech, etc) can all meet the IRS test for qualified research.
Missing out on the R&D tax credit doesn’t just reduce tax savings. It also limits:
For marine manufacturers, this could mean hundreds of thousands in unrealized benefits each year.
Boating companies can secure the R&D tax credit by:
At B10 Capital, we ensure that boating companies capture every eligible dollar, securely and without unnecessary risk.
Marine innovation is everywhere, from new hull designs to advanced propulsion systems. But too often, boating companies fail to claim the financial reward that comes with that innovation. By avoiding these common mistakes, firms can unlock the R&D tax credit and reinvest those savings back into growth.
If you’re in the boating industry and want to know whether you’re leaving money on the table, now is the time to act.
Contact B10 Capital today to review your eligibility for the R&D tax credit. We’ll help you maximize the benefit while ensuring every claim is IRS-compliant and fully defensible.
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