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Fitness Industry Experiences a Spike in the Home Workout Market Increasing Their Opportunity for Tax Credits

Hayley Chowdhry by Hayley Chowdhry
May 6, 2021
in Sports
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Increases in the demand for at-home workout equipment and resources have spiked since the start of the pandemic. This has caused businesses in the fitness industry to pivot to account for this. Research and development have played a huge role in companies’ abilities to provide consumers with the products and services they need. At National Tax Group, we help businesses who have conducted R&D claim tax credits they are owed.

“National Tax Group offers a wide range of high-quality tax solutions to companies of all sizes and in all industries,” said Lee Ferry, President of National Tax Group. “Our in-house experts implement methodologies to ensure your claims are accurate and completed on time.”

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In 2018, the global home fitness equipment market was worth an estimated 10 billion and has a projected 6% increase between 2020 to 2027. Because the fitness market’s demand for home workouts isn’t slowing down, companies are putting extra effort into utilizing new methods and technology.

This includes developing equipment that is conducive to a home environment, putting classes online, and taking into account how people can safely train without the presence of an instructor. Fitness apps and other forms of digital services that people can connect to at home is another example of new developments fitness companies are performing. Some of these apps link to the equipment people are using at home while other apps provide resources, routines and tips. Digital classes have also gained popularity and many studios and fitness instructors offer this service for people who don’t want to come into studios or gyms in person.

All of these improvements take up time, money, and resources and can qualify companies for research and development tax credits. These tax credits are given to companies who undergo investments that contribute to growth in their industry. They are dollar-for-dollar credits companies can directly use to offset costs it took to develop home fitness products. At National Tax Group, we have helped companies in multiple industries with the process of claiming these credits and we have a team of experts ready to help.

Hayley Chowdhry

Hayley Chowdhry

Business Editor

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