Manufacturing Essential to the Economy
With over 55,000 manufacturing companies in the United States, the manufacturing industry is an essential component of the U.S. and Texas economies. As one of the leading industries conducting research and development, ,manufacturing companies are constantly innovating new products and processes and receiving a greater business return for doing so.
In 2013, manufacturers contributed $2.08 trillion to the economy, which is about 12.5 percent of GDP. Manufacturing in the United States alone accounts for over 17.4 million jobs. The manufacturing industry in Texas employs over 874,000 people, ranking number two in the U.S. in total manufacturing employment, behind California.
The manufacturing industry claims and receives the most R&D credits out of all the U.S. industries. In 2011, manufacturing companies claimed nearly $6 billion in federal R&D credits, making up over 64% of the $9.2 billion in total credits claimed that year.
Boeing, a multinational corporation that produces, manufactures and sells airplanes, rockets and satellites saved $145 million through the R&D tax credit in its first quarter provision in 2013 alone, which in turn allows for more money to be put back in the business. Another manufacturer received $1 million in tax credits for developing a prototype for production of design parts.
Between 2002 and 2012, Texas’ manufacturing grew from $97 billion to $211 billion, which accounts for nearly 18.6% of US manufacturing exports. OCI Solar Power, a Korean solar component maker, opened an N-Type cell manufacturing plant in San Antonio which created 400 jobs. With R&D tax credits, manufacturing companies can create even more Texas jobs due to growth in the industry.
Contact a Texas R&D Tax Credit Solutions specialist to begin your R&D credit claim process.