R&D Tax Credits for Aerospace
![Airplane Wing](https://static.wixstatic.com/media/11062b_82b60c28786445678c1e7bff196b1310~mv2.jpg/v1/fill/w_107,h_60,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/11062b_82b60c28786445678c1e7bff196b1310~mv2.jpg)
What is the R&D Tax Credit for Aerospace?
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The R&D tax credit for Aerospace is a unique tax incentive that benefits businesses that develop or improve upon products, processes, or services. The R&D tax credit reduces your federal tax liability dollar-for-dollar and allows businesses an immediate source of liquid assets to get projects off to an immediate start. Businesses are also able to claim the R&D tax credits retroactively for up to 3 or 4 years for work that has already been completed.
Many Aerospace businesses may be eligible for the R&D tax credits and not even realize it. Does your Aerospace business qualify for the R&D tax credit? The IRS has 4 guidelines in place to help businesses understand if they may qualify:
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![Young Scientist](https://static.wixstatic.com/media/11062b_8211195b7d69485f94512b9137b8c038~mv2.jpg/v1/fill/w_61,h_41,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/11062b_8211195b7d69485f94512b9137b8c038~mv2.jpg)
1. Does your business develop or improve upon products, businesses, or services?
![Meeting Table](https://static.wixstatic.com/media/11062b_5876986ba1ca4b6a80dabe4657c9414f~mv2.jpg/v1/fill/w_61,h_41,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/11062b_5876986ba1ca4b6a80dabe4657c9414f~mv2.jpg)
2. Does your business systematically evaluate one or more alternatives during the process of experimentation?
![Fixing a Computer](https://static.wixstatic.com/media/9db3bf855b144c6083ab48c9688c73d9.jpg/v1/fill/w_61,h_46,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/9db3bf855b144c6083ab48c9688c73d9.jpg)
3. Does your business attempt to solve a technical uncertainty?
![Science](https://static.wixstatic.com/media/db6e66c11cf24c1aa7aa0b93a17bbb2f.jpg/v1/fill/w_61,h_41,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/db6e66c11cf24c1aa7aa0b93a17bbb2f.jpg)
4. Does your business fundamentally rely upon established principles of science?
If you answered yes to these 4 questions, your Aerospace business may be eligible to claim these beneficial R&D tax credits. Proveres is here to help you figure out the details.
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What can the R&D Tax Credits do for Aerospace businesses?
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Reduce your payroll taxes
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Use as non-dilutive funding
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Carry your credit forward
How It Works
Proveres will work closely with your business to gain maximum tax credits each year by following these 5 steps:
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Identify & Discover
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​Proveres provides a full analysis of your business and operations, and will help identify which projects and work your business does that can be claimed towards the R&D tax credit.
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Quantify​
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Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.
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Qualify​
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Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.
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Validate & Support​
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When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.
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Annual Reviews to Maximize Credits​
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In addition to discovering existing R&D tax credits your Aerospace business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.
Some examples include, but are not limited to Research, Development, Design, Experimentation, or Testing of any of the following categories:
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New technology & Prototypes, Developing Products or Methods due to new regulations and requirements
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Software
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Hardware, Equipment & Components, Vehicles
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Facilities
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Methods & Processes
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Fasteners & Bonding Agents
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Metal Forming & Welding, Alloys and Powdered Metallurgy Components
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Surface or Coating Treatments, Passivation, Non-Electrolytic Finishing, Hardening Techniques, Heat Treatment
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Machining Techniques
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Waste Reduction
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Material Composites
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Weight Optimization
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Tension Strength & Durability
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Satellites & Satellite Technologies
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Radio Frequency
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Aircraft, Spacecraft & Defense Components
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Automation or Robotics Processes
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Jigs, Dies, Fixtures
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Tooling
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Avionics
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Communications, Navigation & Display Systems
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Cable Harness Assemblies
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Environmental Testing – Stress Screening, Temperature Resistance, Spatial Constraints
To learn more about the R&D Tax Credit for Aerospace, and whether your business qualifies, please contact us.