Who Qualifies for the R&D Tax Credit? Industries You Might Not Expect

Many businesses don’t realize they qualify for the R&D tax credit. Learn which industries often overlook this opportunity—and how your company could benefit.
By
Michael Cadenhead
September 5, 2025

TL;DR

The R&D tax credit isn’t just for scientists in lab coats or tech giants. Businesses in manufacturing, software, A/V, boating, agriculture, and even construction often qualify, yet many never claim it. This blog breaks down some of the industries that can benefit, why companies overlook eligibility, and how to claim the credit securely.

Why So Many Businesses Miss Out

The R&D tax credit is one of the most valuable tools in the tax code, yet it’s also one of the most misunderstood. Many companies assume it’s only for groundbreaking inventions or billion-dollar research labs.

In reality, if your company is solving problems, testing new ideas, or improving products and processes, you may qualify. The IRS definition of R&D is broader than most business owners realize.

Who Qualifies for the R&D Tax Credit?

The credit applies to any U.S. company that engages in qualified research activities. Let’s look at industries that often don’t realize they qualify.

1. Manufacturing

  • Developing new product lines.
  • Testing new materials or processes.
  • Streamlining production for efficiency.

2. Software & Technology

  • Creating or improving software applications.
  • Developing platforms, apps, or coding integrations.
  • Testing and debugging for performance.

3. Audio/Visual & Entertainment Tech

  • Prototyping sound, lighting, and video systems.
  • Engineering custom integrations for venues.
  • Improving equipment reliability and performance.

4. Marine & Boating

  • Designing new hulls, propulsion systems, or components.
  • Experimenting with composite materials.
  • Engineering safety and navigation systems.

5. Agriculture & Food Production

  • Developing new crop management or irrigation systems.
  • Improving food safety or packaging processes.
  • Experimenting with sustainability or yield improvements.

6. Construction & Engineering

  • Designing new building systems or energy-efficient methods.
  • Experimenting with materials or structural innovations.
  • Developing prototypes for complex projects.

7. Healthcare & Life Sciences

  • Medical device design and testing.
  • Developing lab processes or diagnostic tools.
  • Experimenting with new treatment delivery systems.

Why Companies Overlook Eligibility

  • They think it’s only for “big” R&D projects.
  • They view innovation as routine work. Daily problem-solving is often eligible but dismissed.
  • Their CPA doesn’t specialize in the credit. Traditional tax prep often skips R&D analysis.

The Financial Impact of Claiming

The R&D tax credit can deliver:

  • Federal tax savings that offset payroll or income tax.
  • Retroactive claims (often three years back) to capture missed opportunities.
  • Cash flow to reinvest in people, projects, or equipment.

For many mid-size firms, this means six to seven figures in value that can dramatically shift growth strategy.

How to Claim Securely

The most important step is ensuring your claim is both maximized and defendable. That means:

  • Identifying all eligible activities, even those you didn’t think counted.
  • Documenting processes with project notes, testing logs, or employee time tracking.
  • Partnering with experts who understand both your industry and the IRS framework.

At B10 Capital, we specialize in uncovering opportunities across unexpected industries while ensuring every claim is secure, IRS-compliant, and fully defensible.

Final Thoughts

If you’ve ever thought: “We don’t do R&D,” think again. Innovation happens every day across industries that rarely recognize it. From custom prototypes to process improvements, chances are your company is qualifying without realizing it.

Don’t let another year go by without capturing the value you’ve already earned.

Contact B10 Capital today to discover if your company qualifies for the R&D tax credit. Our team will help you maximize the benefit while ensuring complete compliance.

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