The Department of Energy's (DOE) Office of Industrial Programs Announced New R&D Tax Credits Funded from the "Stimulus" Package.

Below is the description from DOE;

The American Recovery and Reinvestment Act of 2009 includes tax credits and incentives for industrial manufacturers who invest in advanced energy facilities and/or advanced energy projects. The R&D tax credit is meant to help offset the costs of investment. Your manufacturing company may find it surprising that many of your modest activities that work toward improving energy efficiency may qualify for the R&D Tax Credit, including:

• Designing, experimenting with, and integrating new machinery, models, and/or systems
• Experimenting with new technologies
• Developing new plants, or expanding and optimizing existing operations
• Integrating new production systems and/or processes to reduce or treat hydrocarbons or other waste systems.

Research expenses, including those generated internally or through third parties such as cost of supplies, employee wages, and contract fees could also qualify for the credit.