Wisconsin Manufacturers: Unlock R&D Tax Credits

R&D Tax Credits: The Opportunity Hidden in Everyday Manufacturing

We see this often—companies solving complex production challenges every day without realizing those activities may qualify for valuable tax credits.

If your team is:

• Improving production processes
• Developing prototypes
• Testing new materials or components
• Customizing products for customers
• Automating workflows or equipment
• Reducing waste or increasing efficiency

…there’s a good chance you may qualify for R&D tax credits.

Unfortunately, many manufacturers who qualify may be leaving significant tax savings on the table.

For Wisconsin manufacturers, these credits can translate into meaningful dollars that can be reinvested in equipment, hiring, technology, or future growth. According to the Congressional Research Service, the effective average federal R&D tax credit is approximately 8.2% of qualifying research expenditures—meaning businesses may receive more than 8 cents back for every dollar spent on eligible activities.

The challenge is often perception. When business owners hear “R&D,” they think laboratories, scientists, and large corporations. In reality, qualifying work frequently happens through everyday problem-solving, testing, experimentation, and process improvement.

If you’re unsure whether your company qualifies for R&D credits, it may be worth a quick conversation with Lucida.

Source: Congressional Research Service, The Federal Research and Development (R&D) Tax Credit (Feb. 2026).