Marine and boating manufacturers drive innovation through design, engineering, and testing, yet many miss out on the R&D tax credit. From prototyping hulls to developing new propulsion systems, boating companies may qualify for significant tax savings. This blog explains what manufacturers need to know, what activities qualify, and how to claim the credit with confidence.
The boating industry has always been a space of creativity and engineering breakthroughs. Manufacturers are:
These activities (and each iteration of them) require experimentation, problem-solving, and technical expertise, all of which may qualify for the R&D tax credit for the boating industry.
Even though boating firms are constantly innovating, many don’t file for the R&D credit. Common reasons include:
The IRS focuses on whether activities involve eliminating technical uncertainty through a process of experimentation. For marine manufacturers, this often includes:
Each of these activities involves uncertainty, iteration, and technical expertise—all core criteria for R&D eligibility.
The R&D tax credit can deliver significant financial benefits to boating manufacturers:
For many marine firms, credits can reach hundreds of thousands, or even millions, of dollars annually.
One of the biggest barriers for boating companies is a lack of documentation. The IRS doesn’t require lab notebooks but does expect reasonable proof. Useful documentation includes:
Even partial records can substantiate a claim and minimize audit risk.
Marine manufacturers should be aware of frequent mistakes that reduce or risk their credit:
Here’s how typical marine innovation aligns with R&D eligibility:
In each case, the company is investing time and resources into uncertain technical outcomes, the hallmark of R&D activity.
To maximize the credit while staying 100% compliant, boating manufacturers should:
At B10 Capital, we focus on making claims that are defensible, compliant, and maximized, ensuring companies get the benefit they deserve without unnecessary risk.
The boating industry faces rising costs, stricter regulations, and growing demand for innovation (such as sustainable propulsion systems). Capturing the R&D credit allows firms to:
Marine manufacturers are innovating every day, but too often they fail to claim the financial rewards tied to that innovation. By recognizing what qualifies, keeping documentation, and partnering with the right experts, boating companies can unlock the R&D tax credit and strengthen their competitive edge.
If you design, test, or manufacture boats or marine equipment, chances are you’re already performing qualifying R&D. The next step is ensuring you capture the benefit.
Contact B10 Capital today to review your eligibility for the R&D tax credit. Our team will help you maximize the value while ensuring full IRS compliance.
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