The aviation industry is rapidly evolving to meet a number of industry challenges, from enhancing safety in an increasingly crowded airspace to satisfying public demands for a reduced carbon footprint. Research and development (R&D) in the aviation industry encompasses innovations in software, engineering, design, and manufacturing, almost all of which qualify for the R&D tax credit. Credits are offered at the federal and state levels, and many companies reinvest the capital to spur continued growth and innovation.
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:
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!