Government contractors design and produce aircraft, spacecraft, ships, and weaponry for civilian, government, and military use. While Lockheed Martin and Boeing are the industry leaders, smaller aerospace companies are hotbeds of innovation, and may be eligible to claim the Research and Development (R&D) Tax Credit. Federal and state tax credits enable emerging or nascent companies to recoup costs and offset the expenses invested in R&D.
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 your potential state tax credit!