Manufacture of machinery and equipment n.e.c.

Manufacturing is a designated Qualifying Activity. Forensic scrutiny focuses on the 'substantial transformation' test to ensure the process is not merely simple assembly or packaging, which would reclassify the income as non-qualifying.

Audit Red Flag

Revenue leakage from 'Embedded Services' such as installation, maintenance, or training that are not properly unbundled from the manufacturing contract and exceed de minimis thresholds.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.