3D Printing – University Business Incubators and R&D Tax Credits

Throughout the US, universities are creating 3D printing incubators to enable students and faculty members to create 3D printing based-businesses. Both engineering and business students are able to integrate their knowledge in developing advanced ideas within these business incubators. 3D printers enable student entrepreneurs to visualize, experiment, design and create a prototype based on their business ideas.

The university 3D incubator participating companies are entitled to a Federal and State R&D tax credits to further assist the commercialization of their ideas.

The Research & Development Tax Credit

• New or improved products, processes, or software
• Technological in nature
• Elimination of uncertainty
• Process of experimentation

Eligible costs include employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent. On December 18, 2015 President Obama signed the bill making the R&D Tax Credit permanent. Beginning in 2016, the R&D credit can be used to offset Alternative Minimum Tax and startup businesses can utilize the credit against $250,000 per year in payroll taxes.

Some of the largest Universities with 3D business incubators include:

Among this growing list of schools, Youngstown State University’s Business incubator (YBI) is a leader in the 3D incubator race. YBI works to facilitate innovation through collaborative partnerships with large companies in the 3D printing industry. YBI provides two high-end 3D printers that enable research and innovation. The University has developed close relationships with large 3D printing companies, and is researching how technology improvements can contribute to their state-of-the-art additive manufacturing program.

Other schools such as the Florida Institute of Technology have developed a 3D printing incubators to encourage the interaction between highly innovative engineering students with business students. Florida State University (FSU) has contributed funding to the development of an incubator for the promotion of entrepreneurship among students. Entrepreneurial students across the FSU campus are able to utilize rent-free office space to run their start-up business ventures, supported by the developments in 3D printing.

University 3D printing incubators should make sure that the businesses they support utilize R&D Tax Credit Incentives.

Charles R. Goulding and Tricia Genova of R&D Tax Savers discuss 3D printing in university incubator settings as it relates to tax credits.