Apparel and textile companies may be eligible for R&D tax credits for performing qualified research activities. For example, the following activities may be eligible for R&D tax credits:
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Performing technical research on new and/or improved alternative or substitute materials (e.g. longer shelf-life, cost reduction, durability)
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Performing technical research on waste reduction and material re-usage
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Performing technical research on new and/or improved fiber, yarn, and other textile materials
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Developing new and/or improved specialized fabrics and components, garments, and garment construction methodologies
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Developing new and/or improved protective clothing (kevlar armor, tactical gear, etc.) using a wide assortment of composite fabrics and other material technologies
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Developing prototypes and experimental samples for testing and validation (e.g. advanced clothing moisture management)
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Developing new and/or improved health care fabrics (material releases vitamins / drugs to the body through absorption)
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Developing new and/or improved energy storing (e.g. heat retention) or body vital / health monitoring embedded technologies (e.g. wearable body garments for assessing sports performance)
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Developing new and/or improved chemical or topical treatments
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Designing new and/or improved manufacturing processes
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Designing new and/or improved software systems or platforms (e.g. web-based e-commerce) systems to enhance material tracking, product logistics, selling / distribution, and communication with external parties
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Designing new and/or improved smart clothing (e.g. anti-odor removal, stain prevention)
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Designing new and/or improved nanotechnology applications (e.g. silver nanoparticles to kill bacteria and fungi, nanoparticles of titanium dioxide / zinc oxide to protect from sun damage, nanoparticles of silica to repel water and stain-producing liquids).
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Designing new and/or improved production processes in textile manufacturing
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Testing prototypes of new and/or improved apparel products for testing and validation
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Testing new and/or improved experimental dying processes to enhance manufacturing output
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Testing resource farming environments and soil to enhance natural product materials (natural cotton, bamboo, and hemp crops)
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Testing textiles in extreme weather conditions
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Testing and developing new and/or improved weaving methods for product functionality (ventilation, strength, etc.)
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Testing textiles durability and shelf-life enhancements