When most people hear “R&D tax credit” they think of software engineers and tech startups, but that’s not the full picture.
The R&D tax credit is available to any company that develops new or improved products, processes, or formulas. That includes industries you might not expect.
Here are 5 industries that qualify for R&D credits (beyond tech).
1. Architecture
Architects don’t just draw buildings. They solve structural, environmental, and material challenges.
Qualifying activities include (but are not limited to):
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Designing energy-efficient building systems
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Testing new materials or structural methods
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Developing sustainable or net-zero designs
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Solving site-specific engineering problems
Example: An architecture firm designs a building with a new passive cooling system. The modeling, testing, and refinement process qualifies.
2. Innovative Manufacturing
Manufacturers who strictly follow existing specs with no new development do not qualify for R&D Tax Credits.
However, manufacturers who design, test, or improve processes absolutely qualify.
Qualifying activities include (but are not limited to):
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Developing new production methods
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Automating manual processes
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Testing new materials or tooling
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Improving quality control systems
Example: A manufacturer designs a new fixture to reduce defect rates. The trial-and-error process to get it right qualifies.
Who doesn’t qualify: A factory running the same production line for years with no changes or improvements.
3. Food & Beverage (Craft Breweries, Distilleries, Food Scientists)
Food and beverage companies are always formulating. New recipes. Shelf-life testing. Scaling from kitchen to production line.
Qualifying activities include (but are not limited to):
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Developing new recipes or flavor profiles
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Testing shelf stability and preservation methods
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Scaling up recipes from lab to commercial production
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Solving packaging or contamination issues
Example: A craft brewery experiments with 20 different hop combinations to achieve a specific flavor profile. The trial-and-error process qualifies.
4. Agriculture & AgTech
Farmers and agricultural companies are solving real problems: higher yields, drought resistance, pest management.
Qualifying activities include (but are not limited to):
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Developing new crop varieties
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Testing new irrigation or fertilization methods
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Creating automated harvesting equipment
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Improving soil health monitoring
Example: A farm tests three different irrigation schedules across 50 acres to determine which maximizes yield with the least water. The entire testing process qualifies.
5. Aerospace & Defense
Aerospace companies are constantly pushing materials, software, and systems into new territory.
Qualifying activities include (but are not limited to):
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Designing new components or systems
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Testing materials for extreme conditions
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Developing simulation or modeling software
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Improving fuel efficiency or safety features
Example: An aerospace supplier develops a new composite material that is 30% lighter than existing options. The material research and testing qualifies.
The Common Thread
You don’t need a lab coat or a software license.
If you’re solving a technical problem through trial and error, designing new processes, or testing alternatives — you may qualify.
The IRS looks for four things:
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New or improved product/process
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Technical uncertainty
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Process of experimentation
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Technological in nature
Industries like architecture, innovative manufacturing, food science, agriculture, and aerospace check every box.
Missed Credits?
Many companies in these industries never claim R&D credits because they don’t think they qualify.
That’s a mistake.
If you’ve spent time, money, and technical effort solving problems, the credits are there.
Call (844) 463-2400 or email hello@indagotax.com.