Satellite Technology R&D Tax Credits

Governments, the military, and the communications sector all rely on satellites. In fact, NASA’s CubeSats and the ISS (International Space Station) depend on satellite technology to conduct scientific research and explore novel space technologies. Furthermore, satellites are of great use to humankind — they survey space, transmit the Internet, and investigate our planet’s environmental conditions, among other things.

For this reason, both US states and the government reward companies that improve or implement innovative satellite technology. Incentives like the Satellite Technology research and development tax credit help companies conducting R&D in the field save money through tax refunds.

Satellite Technology R&D Tax Credit Explained

Any company that develops and improves satellite technology may qualify for the R&D tax credit in the Satellite Technology industry. If you apply and get approved, you may receive a refund of up to 22% of your qualified research expenses. The exact percentage typically depends on the state in which you conduct your business.

Qualifying Costs and Activities

QREs are all expenses related to your research activities, such as employee wages, cloud computer rental, supplies, raw materials, and costs of third-party contractors. Using this incentive, you can also cover several job positions. These include mechanical and materials engineers, research scientists, robotics and CAD engineers, C-Suite, spacecraft designers, aerospace technicians, chemical engineers, and QA/QC personnel. Furthermore, activities that qualify your company for the Satellite Technology R&D tax credit include the following:

• Designing lighter, more durable, cost-effective satellites;

• Testing new communication methods and encryption techniques;

• Designing models and 3D prototypes;

• Integrating solar energy and improving satellite fuel;

• Increasing efficiency in the manufacturing process;

• Making new composite materials and testing them.

Our experts can help you claim the Satellite Technology R&D tax credit without upfront costs. We can also calculate the amount you can get and give you a free quote.

FAQs

What kind of companies can apply?

Satellite companies 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.