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Engineered Tax Services Helps Defense Industry Manufacturers Fund Operations with R&D Tax Credits
ETS shares how R&D tax credits help fund operations in the defense industry
As one of the few tax credits that has bi-partisan support in Washington, the R&D credit was made a permanent tax credit as part of the Protecting Americans from Tax Hikes (PATH) Act of 2015. Most states also provide an R&D tax credit for qualifying activities within the state. ETS is typically able to go back to all open tax years (3 or 4 years) to capture these credits for companies. In addition, for companies coming out of losses, there can be an opportunity to carry forward these credits from closed tax years as well – the federal R&D credit carries forward for 20 years.
A defense manufacturer that is conducting any of the following activities within the U.S. will likely qualify for the R&D credit: developing new or improved products or manufacturing processes, prototyping and 3D modeling, value engineering, tooling and equipment fixture design and development, product development using computer aided design tools, designing manufacturing equipment, alternative materials testing, and quality assurance.
About Engineered Tax Services
ETS is a nationally licensed engineering firm which is headquartered in West Palm Beach, FL with 15 offices nationwide and over 140 employees and consultants. ETS works with many of the Top 100 CPA firms and Fortune 500 companies nationwide. You can learn more at http://www.EngineeredTaxServices.com.