I was recently talking with the company’s treasurer about the challenges facing OEMs in regards to meeting the 54.5 mpg CAFE requirement by 2025 and the various lightweighting and alternative powertrain technologies that are being developed and deployed.
And being the good money steward he is, he brought to my attention an item from a CPA and advisory firm, Battelle Rippe Kingston on R&D credits that manufacturers may be able to get from local, state or the federal government.
According to the firm, “R&D” isn’t simply about researching and developing things (e.g., batteries or new materials), but actually manufacturing operations.
Battelle Rippe and Kingston write:
“Examples of automotive initiatives that may be eligible for R&D tax incentives include:
All of which is to say that the road to 2025, while it won’t be smooth and will involve, undoubtedly, many detours along the way, can conceivably somewhat less expensive than might have otherwise been thought, at least vis-à-vis taxes.