Exploring Research and Development Tax Credits: Aerospace
With increasing demand for new aircraft, military equipment and component parts, research and development (R&D) is the lifeblood of the aerospace and defense industries.You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include:
- Developing weaponry and technology needed by the military, intelligence agencies and/or border patrol
- Developing and/or implementing production technology that increases quality, reliability and performance or reduces waste, scrap, spoilage or defects
- Creating production processes that are more environmentally friendly
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service and Treasury who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate computation and information gathering and a quality assurance team that reviews deliverables and computations.
For more information, download the attachment below.