The firearms, ammunition, and missile defense industries are highly regulated and serve consumers, law enforcement, and the military. A significant proportion of the industry’s resources is spent on research and development (R&D). If your manufacturing company designs and tests novel prototypes, increases efficiency of existing systems, or experiments with missile technology, it may be eligible to claim the R&D Tax Credit. The tax savings allow companies to reinvest in their workforce, infrastructure, and additional R&D projects.
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!