The electric and hybrid marine sector is growing fast, and so is the volume of qualifying R&D activity happening inside boatbuilding, propulsion engineering, battery design, charging infrastructure, and onboard electronics.
If your company is designing, testing, or improving electric or hybrid boat components, you may be eligible for the R&D tax credit. This includes work on propulsion systems, energy storage, materials, hydrodynamics, and software integration.
As global pressure for cleaner transportation increases, the marine industry is undergoing its fastest transformation in decades. Manufacturers are racing to improve:
This push for innovation is exactly what the R&D tax credit was designed to reward.
Electric and hybrid marine development involves high technical uncertainty, ongoing experimentation, and engineering-led problem solving, all key indicators of qualified R&D.
To qualify for R&D tax credits, an activity must involve:
Electric and hybrid marine projects nearly always check all four boxes.
Below is a detailed breakdown of the most common qualifying activities.
Designing and testing battery systems is one of the most R&D-intensive challenges in marine tech.
Common qualifying activities include:
If your engineering team is battling heat, range, weight, or durability issues then you’re performing R&D.
Propulsion development is full of technical uncertainty:
Qualifying work includes:
Anything done to improve motor performance or solve reliability challenges qualifies.
Hybrid boats add even more complexity because they combine internal combustion engines with electric systems.
Examples of qualifying R&D:
If your team is working to make hybridization seamless, efficient, or scalable, it qualifies.
Electric boats require optimized hull shapes because range and drag are interconnected.
Qualifying activities include:
Hydrodynamics innovation is one of the most R&D-rich areas of marine engineering.
A major bottleneck in electric boating today is charging access.
Companies innovating in this area often qualify for R&D credits.
This includes:
If you’re solving infrastructure challenges, it’s R&D.
Electric boats rely heavily on software, and software development qualifies for R&D when it involves experimentation.
Qualifying work includes:
Software designed to improve performance, precision, or safety qualifies.
Electric boats require reduced weight to maximize efficiency.
Qualifying projects include:
Material experiments (especially those requiring prototypes) are textbook R&D.
Engineering safety solutions involves technical uncertainty, making it eligible R&D.
Examples:
If compliance or safety required you to redesign or test something, it qualifies.
You don’t need to be a large manufacturer.
The R&D tax credit applies to:
If your company designs, builds, tests, or improves something, it likely qualifies.
Qualified research expenses include:
These can add up quickly in marine engineering, creating substantial credits.
Electric marine technology is still early-stage, which means:
All of this is exactly what the IRS considers eligible R&D.
The more innovation, the bigger the credit.
Marine R&D is deeply technical.
We help companies translate engineering, design, testing, and experimentation into IRS-qualified research, with
Big Four–level compliance and marine-specific experience.
Our process includes:
The shift toward electric and hybrid marine technology is accelerating and companies at every stage of innovation are performing qualifying R&D.
If your team is solving technical problems, designing new components, improving performance, or experimenting with materials, you may be eligible for one of the most valuable incentives available today.
If you're engineering electric or hybrid marine solutions, you’re likely leaving significant credits unclaimed.
Contact B10 Capital today to evaluate your qualifying activities and secure your R&D tax benefits.
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