Government Contractors R&D Tax Credits

A government contractor is a private company that provides services for the government. If you are an owner of such a firm and design ships, spacecraft, aircraft, or weapons for public government agencies, you may be eligible for incentives such as the Government Contractors research and development tax credit that will help you advance this field further.

Government Contractors R&D Tax Credit Explained

If your company creates new aircraft systems and improves the performance of existing ones, it may be eligible for the Government Contractors R&D tax credit. This credit might be the funding your company needs — you’ll receive a refund of up to 22% of your total qualified research expenses (QREs).

Qualifying Costs and Activities

Every expense you make for employee wages, cloud computer rental, supplies, raw materials, and costs of third-party contractors is considered a QRE. The R&D tax credit refund can also help you cover job titles such as aerospace technicians and engineers, materials and mechanical engineers, CAD engineers, aircraft designers, software engineers, systems engineers, director of R&D, and QA/QC engineers.

Furthermore, you may be eligible for the R&D tax credit in the Government Contractors industry if your company performs the following activities:

• Testing and creating new aircraft systems;

• Enhancing aircraft and missile guidance systems;

• Improving the security of government computer systems;

• Designing prototypes and 3D models;

• Developing new welding techniques and surface systems;

• Enhancing automation to improve efficiency and safety;

• Developing new software to enhance integration.

Contact us to discuss your Government Contractors R&D tax credit. Our experts can give you a free quote and help you claim the credit without any upfront costs.

FAQs

What kind of companies can apply?

Government contractors that conduct qualifying research activities.

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.