Research and development has become essential for the aerospace industry as there is increasing demand for new aircraft, military equipment, and component parts. These activities can take up significant resources and capital.
The R&D Tax Credit can allow companies in the textile industry to increase cash flow, invest in expansion projects, and continue to grow their business. Examples of activities that could qualify for the R&D Credit include:
- Developing technology as needed by the military, intelligence agencies, or other government groups
- Developing and implementing production technology that increases quality, reliability, and performance.
- Developing technology that reduces waste, scrap, spoilage or defects.
- Developing production processes that are more environmentally friendly
For example, Company ABC develops night vision technology. The Company undertakes a project to develop a new heat sensing application for night vision. In order to do so, the Company develops and tests software, firmware, and equipment configurations. The Company develops several iterations of prototypes of the product until the product meets the highest standards of performance. In this case, Company ABC can capture costs involved with the development of the software, firmware, and prototype development and testing.
Working directly with clients and their CPAs, TRCG has delivered R&D services to several aerospace companies. Through industry expertise, TRCG can quickly understand your company processes, identify potential qualifying projects, and help you capture valuable tax credits.