The level of innovation and research activity across the aviation industry make it a natural fit for R&D tax credits.
Navigating the claims process, however, can be a complex process that requires consistent guidance to avoid draining time and resources.
Your company can pursue R&D credits for eligible activities if you:
- Generate prototypes and first articles for testing and validation
- Develop new machines, fixtures, jigs, and tools for aircraft manufacturing and assembly
- Develop new or improved metal forming, welding, and machining techniques
- Develop engineering designs for integration of new monuments, galleys, seats and inflight entertainment (IFE) systems, into an aircraft
- Design and develop new or improved aircraft monuments and components
- Develop new or improved manufacturing processes, such as computer numerical control (CNC) machine programs and manufacturing plans, to build aircraft components with stringent specifications or tight tolerances
Several states also offer tax credits and incentives, grants, and programs beneficial to aviation companies. Notable offerings include:
- Washington’s Property and Leasehold Excise Tax Credit
- Washington’s Qualified Aerospace Product Development Expenditures Credit
- California’s Sales and Use Tax Refund Review
- Colorado’s Aviation Development Zone Tax Credit
- Texas’s Enterprise Fund
In addition, businesses with international exports could reduce taxable income by creating interest charge domestic international sales corporations (IC-DISC).
Put money back into your business with our Tax Credits and Incentives, R&D Tax Credit Services, and more.