Firearms, Ammunition, & Missile Defense R&D Tax Credits

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: 

• Designing and implementing technology that improves gun safety (e.g. requires user voice, fingerprint, or facial recognition)
• Developing novel microstamping technology to track suspects after a crime has been committed
• Improving the military’s weapons performance to maintain combat effectiveness
• Experimenting with new materials for ammunition, optics, and small arms that reduce weight and waste
• Implementing operational processes that are cost-effective and increase throughput on the shop floor (e.g. robotics)
  

Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs? 

• Ammunition Technicians
• Chemical Engineers
• Computer-aided Design (CAD) Engineers
• Materials Engineers
• Mechanical Engineers
• Process Engineers
• Project Managers
• QA/QC Personnel
• Systems Engineers
  

Use our R&D Tax Calculator to estimate your potential benefit, and partner with Strike to claim your tax benefits with no up-front costs. Contact one of our experts today.