Jet Propulsion & Rocketry R&D Tax Credits
For your company to advance in the jet propulsion and rocketry industry, you must continually invest in R&D operations. But not many businesses know that research activities that result in more efficient and powerful engines qualify for certain state and federal tax incentives. For example, experimenting with new materials, enhanced processing methods, and advancements in turbomachine technology make your company eligible for the Jet Propulsion & Rocketry research and development tax credit. You can use this incentive to offset a portion of your R&D expenditures.
Jet Propulsion & Rocketry R&D Tax Credit Explained
To qualify for the Jet Propulsion & Rocketry R&D tax credit, your company should design and test equipment, enhance safety and sustainability, and improve on existing designs in this field. If you fit these criteria, you may receive a refund of up to 22% of your total qualified research expenses (QREs).
Qualifying Costs and Activities
When speaking of QREs, you should know that they include employee wages, cloud computer rental, supplies, raw materials, and costs of third-party contractors. Once you get your 22% refund, you’ll be able to cover job titles such as chemical and materials engineers, aerospace engineers, C-Suite, software developers, CAD engineers, systems engineers, manufacturing and tooling engineers, PhDs, and QA/QC personnel.
If your company performs some of the following activities, it may qualify for the R&D tax credit in the Jet Propulsion & Rocketry industry:
Testing rockets in simulations and launches;
Developing reusable rockets;
Testing and building prototypes;
Developing software for improved efficiency;
Improving designs of rocket engines and testing new fuel formulas;
Improving manufacturing, handling, and transporting processes.
Our experts can help you claim the Jet Propulsion & Rocketry R&D tax credit without upfront costs. Give us a call to get a quote and discuss your potential gain.
What kind of companies can apply?
Companies that conduct qualifying research activities in the jet propulsion and rocketry field.
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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