The aerospace industry is heavily dependent on technological advances, and requires substantial investments in research and development (R&D) to design functional and safe products. If your aerospace engineering company designs novel aircraft or components, improves the capability or efficiency of production processes, or tests prototypes and first articles, it may be eligible to claim the R&D Tax Credit. Credits are offered at the federal and state levels and the infusion of capital allows companies to reinvest in their workforce and fund future growth.
Employee wages, raw materials and supplies, cloud computer rental, and third-party contractor costs associated with R&D activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates.
Examples of qualifying activities:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!