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Firearms, Ammunition & Heavy Weapon Defense R&D Tax Credits

There’s hardly an industry that needs to adhere to strict safety requirements as much as the firearms, ammunition, and heavy weapon defense industries. They invest large sums in research and development to ensure the products they deliver are safe and high-quality. But with the new Firearms, Ammunition, & Heavy Weapon Defense research and development tax credit, they may be able to direct some of the investment back into their own workforce and further improve their business.

Firearms, Ammunition, & Heavy Weapon Defense R&D Tax Credit Explained

The Firearms, Ammunition, & Heavy Weapon Defense R&D tax credit is offered to companies experimenting with missiles, designing weapon prototypes, and improving existing systems. If your company does any of that, you may be eligible for a claim.

If your claim gets approved, you may receive a refund of up to 22% of your qualified research expenses. The exact percentage and amount differ from state to state, so make sure to do your research beforehand.

Qualifying Costs and Activities

QREs encompass all expenses you make during research and development, such as employee wages, cloud computer rental, supplies, raw materials, and costs of third-party contractors. With the R&D tax credit coverage, you can fund several job titles, including mechanical and materials engineers, project managers, process and systems engineers, chemical engineers, ammunition technicians, CAD engineers, and QA/QC personnel.

Moreover, you may submit a claim for the R&D tax credit in the Firearms, Ammunition, & Heavy Weapon Defense industry if your company performs the following:

  • Designing technology that improves firearms safety;

  • Developing technology that tracks suspects who might have committed a crime with your weapon;

  • Trying out new weapon materials that reduce weight;

  • Enhancing military weapons to maximize combat effectiveness.

Schedule an appointment so we can talk about your potential gain and give you a free quote. Our experts can help you claim the Firearms, Ammunition, & Heavy Weapon Defense R&D tax credit without upfront costs.

 

FAQs

What kind of companies can apply?

Companies that conduct qualifying research activities in the firearms, ammunition, and heavy weapons defense industry.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, lab results, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.

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