Does your aerospace business resolve technological challenges through the innovative use of processes and products? Despite its name, the research and development (R&D) tax credit program includes far more activities than research, patents and laboratory work.
Companies investing in creating new products in Illinois have been at a disadvantage since the valuable R&D tax credit program expired in 2015. Now that has all changed.
Tax reform is in the air. While we don’t yet know how it will play out, business owners should take note of the bipartisan support for an incentive to increase the productivity of U.S. companies in a wide range of industries—the R&D tax credit.
It is an exciting time for research and development in the aerospace industry—with strong growth in 2016 after several years of stagnancy, the outlook is healthy for the development of groundbreaking technology.
There is one thing that may hold some business owners back—the fear of being audited by the IRS. While only a small percentage of businesses that apply for R&D credits actually get audited, it is important they maintain precise documentation of R&D activities that align with qualification criteria so that if an audit is required, they are fully prepared.
It is an exciting time for the aerospace industry—the outlook is healthy for innovation and the development of groundbreaking technology. As an industry significantly invested in research and development (R&D) activities, aerospace companies can further reinvest in their growth by qualifying for federal and state R&D tax credits. But which activities qualify, and how does the process work?
In a show of bipartisanship, U.S. Sens. Chris Coons (D-DE) and Pat Roberts (R-KS) introduced the Invent and Manufacture in America Act on June 6, 2017. The bill is intended to further enhance the research and development tax credit for those companies that conduct R&D in the U.S. and for those who manufacture products as a result of R&D that took place in the U.S.
When you think about it, packaging is essential for any product being sold. From storage to transport to the end user, package designers seek ways to advance the quality, functionality and safety of their products—all within compliance of regulatory guidelines. Many package designers would be surprised to discover that many of the activities they already are conducting qualify for valuable tax credits.
Rhode Island enjoys a wealth of strategic advantages for businesses engaged in research activities of all sizes and scopes. Its centralized presence in the Northeast U.S. provides easy access to key centers of national and international commerce. It enjoys the Northeast’s lowest corporate tax rate. Its renowned academic institutions are havens of innovation and serve as incubators for many innovative startups.
With so many tax proposals swirling around in Washington, the business world is in a wait-and-see mode to see how it all falls out. While tax reform could very well do away with many of the tax credits businesses utilize, there is nothing in these proposals that would negatively impact the valuable research and development tax credit.