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:

  • Performing technical research on new and/or improved alternative or substitute materials (e.g. longer shelf-life, cost reduction, durability)

  • Performing technical research on waste reduction and material re-usage 

  • Performing technical research on new and/or improved fiber, yarn, and other textile materials 

  • Developing new and/or improved specialized fabrics and components, garments, and garment construction methodologies

  • Developing new and/or improved protective clothing (kevlar armor, tactical gear, etc.) using a wide assortment of composite fabrics and other material technologies

  • Developing prototypes and experimental samples for testing and validation (e.g. advanced clothing moisture management)

  • Developing new and/or improved health care fabrics (material releases vitamins / drugs to the body through absorption)

  • 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)

  • Developing new and/or improved chemical or topical treatments

  • Designing new and/or improved manufacturing processes

  • 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

  • Designing new and/or improved smart clothing (e.g. anti-odor removal, stain prevention) 

  • 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).

  • Designing new and/or improved production processes in textile manufacturing

  • Testing prototypes of new and/or improved apparel products for testing and validation

  • Testing new and/or improved experimental dying processes to enhance manufacturing output 

  • Testing resource farming environments and soil to enhance natural product materials (natural cotton, bamboo, and hemp crops) 

  • Testing textiles in extreme weather conditions

  • Testing and developing new and/or improved weaving methods for product functionality (ventilation, strength, etc.)

  • Testing textiles durability and shelf-life enhancements

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