R&D Tax Incentives For The Energy & OFS Industries
Following the recent energy downturn, pressure has increased for Oilfield Service (OFS) to spend significant time and effort developing more efficient and effective ways to service the exploration, production, transportation and refining of oil and gas.
Fortunately, through the expansion of qualifying activities, OFS companies can claim a vast range of activities that assist the entire energy chain from Offshore platform design, to refinery safety systems.
Which activities qualify for R&D tax credit?
The drive for efficiency gains and the need to compete has necessitated innovation, research activities and development projects to extend beyond the traditional R&D arena.
Qualifying research and development activities include:
- New product development
- Customization of existing product lines for a client’s specific needs
- Flow assurance simulations
- Installation engineering
Examples of qualifying activities in the Energy & Oilfield sector include:
- Rig and platform structure design
- Processing and plant design and construction
- Improving or developing drill designs
- Designing and constructing facilities and pipelines
- Improving transportation methods
- Containment systems
- Environmental testing
- Metering systems
- Protection and safety systems
- Electrical and instrumentation implementation
- Engineering design and design of pressure vessels tanks and processing equipment
Examples of qualified personnel include:
- Petroleum engineers developing new field designs
- Mechanical, facility, industrial or industrial distribution engineers designing new facilities/tools
- Electrical engineers designing and implementing electrical systems
- Pipeline engineers designing and constructing new pipelines
- Welders and skilled fabricators supporting construction and design efforts
- CAD designers and modelers designing facilities and equipment
Continuing oil price volatility, increased competition, and producers’ expectations on OFS, all present ongoing challenges to the OFS market sector. But Ayming, through its experienced consultants, global expertise and proven track record, is uniquely placed to ensure that your business receives the credits it’s due.
Click here to learn more about R&D Tax Credits and the role they play in the OFS sector!
Download your free factsheet
We’ve put together a handy summary of research and development in the Energy & Oilfield Services industry.
Simply fill in your details to download your free factsheet and learn more about developing your business with R&D tax incentives.