top of page

R&D Tax Credits for Aerospace

Airplane Wing

What is the R&D Tax Credit for Aerospace?

​

The R&D tax credit for Aerospace is a unique tax incentive that benefits businesses that develop or improve upon products, processes, or services.  The R&D tax credit reduces your federal tax liability dollar-for-dollar and allows businesses an immediate source of liquid assets to get projects off to an immediate start.  Businesses are also able to claim the R&D tax credits retroactively for up to 3 or 4 years for work that has already been completed.

 

Many Aerospace businesses may be eligible for the R&D tax credits and not even realize it.  Does your Aerospace business qualify for the R&D tax credit?  The IRS has 4 guidelines in place to help businesses understand if they may qualify:

​

Young Scientist

1.  Does your business develop or improve upon products, businesses, or services?

Meeting Table

2.  Does your business systematically evaluate one or more alternatives during the process of experimentation?

Fixing a Computer

3.  Does your business attempt to solve a technical uncertainty?

Science

4.  Does your business fundamentally rely upon established principles of science?

If you answered yes to these 4 questions, your Aerospace business may be eligible to claim these beneficial R&D tax credits.  Proveres is here to help you figure out the details.

​

What can the R&D Tax Credits do for Aerospace businesses?

 

  • Reduce your payroll taxes

  • Use as non-dilutive funding

  • Carry your credit forward

 

 

How It Works

 

Proveres will work closely with your business to gain maximum tax credits each year by following these 5 steps:

Identify & Discover

​

​

​Proveres provides a full analysis of your business and operations, and will help identify which projects and work your business does that can be claimed towards the R&D tax credit.

Quantify​

​

​

Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.

Qualify​

​

​

Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.

Validate & Support​

​

​

When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.

Annual Reviews to Maximize Credits​

​

In addition to discovering existing R&D tax credits your Aerospace business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Some examples include, but are not limited to Research, Development, Design, Experimentation, or Testing of any of the following categories:
 

  • New technology & Prototypes, Developing Products or Methods due to new regulations and requirements

  • Software

  • Hardware, Equipment & Components, Vehicles

  • Facilities

  • Methods & Processes

  • Fasteners & Bonding Agents

  • Metal Forming & Welding, Alloys and Powdered Metallurgy Components

  • Surface or Coating Treatments, Passivation, Non-Electrolytic Finishing, Hardening Techniques, Heat Treatment

  • Machining Techniques

  • Waste Reduction

  • Material Composites

  • Weight Optimization

  • Tension Strength & Durability

  • Satellites & Satellite Technologies

  • Radio Frequency

  • Aircraft, Spacecraft & Defense Components

  • Automation or Robotics Processes

  • Jigs, Dies, Fixtures

  • Tooling

  • Avionics

  • Communications, Navigation & Display Systems

  • Cable Harness Assemblies

  • Environmental Testing – Stress Screening, Temperature Resistance, Spatial Constraints

 

To learn more about the R&D Tax Credit for Aerospace, and whether your business qualifies, please contact us.

bottom of page