Adhesives and sealants manufacturers — companies that produce structural, industrial, or specialty adhesives and sealants — may perform activities that warrant analysis under the federal R&D tax credit. This page explains what development work may be relevant. It is educational and is not individualized advice. For the foundational framework, see our page on qualified research.
What R&D May Look Like in Adhesives and Sealants Manufacturing
Adhesives and sealants manufacturing involves formulation development, substrate bonding, curing, performance testing, and process development. Work directed at resolving genuine technical uncertainty in these areas may warrant review.
Industry-Specific Examples of Technical Development
- Developing adhesive or sealant formulations to achieve a specified bond-strength, durability, or performance target where the appropriate formulation is uncertain.
- Testing alternative substrates or surface treatments to meet a bonding target where the capability is uncertain.
- Developing curing processes — thermal, UV, moisture — to achieve a specified target where the appropriate protocol is uncertain.
- Testing alternative raw materials or chemistries to meet a performance or cost target where the capability is uncertain.
- Developing application or dispensing processes to achieve a specified target where the method is not established.
- Developing formulations for new applications or environments to meet a specified performance target where the appropriate approach is uncertain.
Technical Uncertainty Examples
- Whether an alternative formulation can achieve a specified bond-strength target on a new substrate.
- Whether a modified curing process can achieve a specified target at production speed.
- Whether an alternative chemistry can meet a durability target in a specific environment.
Process-of-Experimentation Examples
A process of experimentation may involve preparing test formulations and conducting bond-strength and durability testing, testing alternative substrates and surface treatments and measuring bond performance, or running curing trials and measuring results.
Potential Business Components
Potential business components may include a new or improved adhesive or sealant product, a new or improved formulation, a new or improved curing process, or a new or improved application or dispensing process.
Employee and Contractor Work
Employees whose work may warrant analysis include formulation chemists, adhesives scientists, process engineers, and quality engineers. Contractor work may include outside testing laboratories or raw material suppliers performing development work on behalf of the manufacturer.
Activities That Generally Require Caution or May Not Qualify
- Routine production to known formulations and processes.
- Ordinary quality control or inspection.
- Simple raw material substitutions without a technical development question.
- Routine equipment maintenance and setup.
- Ordinary troubleshooting without an identified uncertainty and evaluative process.
Documentation That May Help
Records that may help include formulation development records, bond-strength and durability test results, curing trial data, and records connecting personnel and materials to specific development projects.
Example Hypothetical Project
The following is a hypothetical example for illustration only.
An adhesives manufacturer is developing a formulation intended to bond a new substrate that is difficult to bond with existing products. The technical uncertainty is whether an alternative combination of chemistry, formulation, and surface treatment can achieve the specified bond-strength and durability target. The team prepares test formulations, conducts bond testing, and evaluates durability. Professional review is still needed.
Questions to Ask Internally
- What specific adhesive, formulation, or process was being developed or improved?
- What technical uncertainty existed at the outset?
- How does this differ from routine production?
Relationship to the Four-Part Test
The four-part test applies the same way as in any industry. The work must satisfy all four elements: permitted purpose, technological in nature, elimination of uncertainty, and process of experimentation.
Key Takeaway
Adhesives and sealants manufacturers may perform activities that warrant analysis under IRC §41 — particularly work involving formulations, substrate bonding, curing, performance testing, and process development. Routine production does not automatically qualify. Because these determinations are fact-specific, professional review is appropriate. For related industries, see coatings and paint manufacturing and chemical manufacturing.