Many aerospace companies are not taking advantage of the R&D Tax Credit. Other companies are aware of the R&D Tax Credit, but fail to take full advantage due to misconceptions about the types of research and development activities that qualify. The fact is that a broad range of common aerospace industry practices will qualify for the R&D Tax Credit. Research and development is not limited to the work of dedicated scientists in white coats and Bunsen burners. Aerospace industry engineers, designers, and architects spend a substantial portion of their time in what is referred to as qualified activity.  The level of effort spent can mean significant eligible research expenditures that your company is entitled to receive.

If you are in the aerospace industry, there is a strong chance that you would benefit from an R&D tax credit study. Speak to our engineering experts to help you understand if your activities qualify for the R&D credit.

Examples of aerospace innovations eligible for R&D tax incentives include the following:

  • Designing new aircraft or spacecraft
  • Developing new or improved metal forming, welding, and machining techniques
  • Developing new composite materials and manufacturing methods
  • Designing new jigs, dies, fixtures, and tooling
  • Implementing automated processes and robotics
  • Generating prototypes and first articles for testing and validation
  • Developing new or improved fasteners and bonding agents
  • Conducting design validation testing to satisfy regulatory requirements
  • Developing new applications for engineering plastics
  • Designing new methods for manufacturing avionics and cable harness assemblies
  • Developing new surface treatment, passivation, and coating methods
  • Developing new surface hardening methods
  • Developing new alloys and powdered metallurgies
  • Innovating ways to optimize strength and minimize weight
  • Developing new heat treatment profiles and procedures
  • Designing and developing of scaled-up manufacturing processes
  • Experimenting with ways to increase product yield and decrease cycle times
  • Innovating ways to improve a product quality
  • Developing new or improved manufacturing processes
  • Developing new or improved technologies
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