The boating and marine industry is full of innovation, from designing new hulls to testing propulsion systems and building smarter navigation tools. Yet many manufacturers overlook the R&D tax credit, leaving substantial savings unclaimed. This blog explains how prototyping, engineering, and production improvements qualify, why boating companies miss out, and how to secure the benefit.
The marine industry thrives on constant problem-solving and design refinement. Companies are:
All of these activities involve uncertainty, experimentation, and technical design, the hallmarks of R&D under IRS guidelines. Still, many boating companies never connect the dots between their daily innovation and a major tax incentive.
Many marine manufacturers believe R&D only applies to biotech or software. In reality, any company that develops or improves products or processes likely qualifies, including those working in fiberglass, propulsion, or electronics integration.
Designing new hulls, testing new engines, or refining materials often feels routine to marine engineers. But those efforts are precisely what the IRS defines as R&D.
Some companies fear they can’t prove their innovation qualifies. Without a clear system for tracking prototypes, iterations, or testing, they avoid filing altogether.
Not every CPA or advisor is versed in the details of the R&D tax credit. Without proactive guidance, marine companies may never be told they qualify or undervalue what they could do with the tax credit.
Here’s where marine companies can start to identify R&D-qualifying work:
If your company spends time experimenting, testing, and refining before final production, you’re likely conducting qualifying R&D, oftentimes more than once.
The R&D tax credit doesn’t only apply to “big ideas” that never make it to market. It also covers the journey from concept to commercial reality.
Each of these phases involves iteration and experimentation, making them eligible for the credit.
For many boating companies, the R&D tax credit can mean:
At a time when material costs and regulations are rising, unlocking this credit can be a significant for profitability.
Maximizing the R&D tax credit requires both expertise and defensibility:
At B10 Capital, we specialize in ensuring marine firms don’t leave money on the table. Our process emphasizes compliance, security, and maximizing return without unnecessary risk.
Marine companies are constantly innovating, but too often, they miss the financial benefits tied to their work. From prototyping hulls to perfecting propulsion, the industry is full of qualifying R&D activities. By understanding eligibility and working with the right advisors, boating manufacturers can translate their innovation into significant tax savings.
If your company designs, tests, or manufactures marine equipment, you may qualify for the R&D tax credit, even if you’ve never claimed it before.
Contact B10 Capital today to explore your opportunities. Together, we’ll ensure your marine innovation translates into secure, IRS-compliant savings.
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