The Research & Development Tax Credit
Enacted in 1981, the now permanent Federal Research and Development (R&D) Tax Credit allows a credit that typically ranges from 4%-7% of eligible spending for new and improved products and processes. Qualified research must meet the following four criteria:
- Must be technological in nature
- Must be a component of the taxpayer’s business
- Must represent R&D in the experimental sense and generally includes all such costs related to the development or improvement of a product or process
- Must eliminate uncertainty through a process of experimentation that considers one or more alternatives
Eligible costs include US employee wages, cost of supplies consumed in the R&D process, cost of pre-production testing, US contract research expenses, and certain costs associated with developing a patent.
On December 18, 2015, President Obama signed the PATH Act, making the R&D Tax Credit permanent. Beginning in 2016, the R&D credit can be used to offset Alternative Minimum tax for companies with revenue below $50MM and for the first time, pre-profitable and pre-revenue startup businesses can obtain up to $250,000 per year in payroll taxes and cash rebates.
The Cerevo Orbitrec
Bicycles are composed of different materials and over the years, these materials have advanced from iron alloys to aluminum, titanium, and/or alloy combinations of these elements. Titanium is lightweight which means that more can be packed into a smaller volume. It is lighter than steel and usually more durable than carbon fiber. Carbon fiber bikes are made of fibers that are embedded in an epoxy resin and layered at various thicknesses for different bicycle parts. It is usually used in competitive road biking races while titanium is usually used for mountain biking.
Bicycle company Cerevo has mastered the 3D printing of road bikes. The Orbitrec was on display at the Consumer Electronics Show in Vegas in 2016. This bicycle has a 3D printed titanium frame and carbon fiber tubes that are manufactured at a competitive cost. The bike also has a device, Ride 1, which connects the cyclist’s heart rate while providing data about their ride. Similar to how Strava connects cyclists and runners to millions of athletes around the world, so too does Ride 1. In this case, the program is connected with the bike, detecting the performance of the rider and the surrounding environment. Designed by Satoshi Yanagisawa, the Orbitrec is taking a futuristic approach to cycling.
Trek Bicycle Corporation is using 3D printing as a means to create rapid prototypes of unique bicycles for riders. They find it particularly useful when it comes to designing the cable routing. Giant, another bicycle manufacturer, 3D prints frames and believes that additive manufacturing assists in the process of creating the best bike. 3D printed bikes and parts not only help in creating the best aerodynamic design, but also allow mechanics to assemble the bike for a better fit. Crankshafts and various other parts can easily be printed as well.
Printed Titanium
Australian organization CSIRO is advancing the world of new bike technologies. CSIRO is using computer-aided designs to create models of bicycles and their frames. The designs are then sent over to a 3D titanium printer. The bikes’ 3D printed parts provide a customized fit and more flexibility for the user. Overall, the bike provides a better cycling experience for the rider.
3D Printed Bike Wheel Caps
You look down at your speedometer and see that you are reaching 45 mph. You take a sip from your water bottle and hear a pop from the rear tire. You pull off the side of the road and change the tire. While removing your tube from the tire you realize that you have lost the wheel cap.
However, in your saddlebag you have an extra pair of wheel caps that you had 3D printed before your long bicycle journey. You have customized your wheel caps to create shapes such as pizza slices and various figurines that will fit over the valve on your tube. No need to fret if you lose the originals as your 3D printed wheel caps will do the job.
Printed Handlebars, Olympics, and Beyond
Professional Cycling and 3D Printing
Conclusion
Bicycle racing is mainly based on the performance of the material of the bike, garments being worn, and aerodynamics of the rider. Bicycle manufacturers are finding benefits from using 3D printing technology to build the prototypes for their bikes. Bicycle manufacturers, engineers, mechanics, and scientists who are involved in 3D printing in the bicycle industry may be eligible for R&D Tax Credits.
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Charles Goulding and Alize Margulis of R&D Tax Savers discuss 3D printing in the bicycle industry.