Domestic Production Activities Deduction (DPAD) is another tax incentive currently available for production activities within the US.
Some of the activities that may qualify include:
- Developing new products
- Developing updated and revised products or methods
- Designing and developing new equipment or processes
- The implementation of new and innovative processes
- Process optimization
Companies in the Aerospace & Defense industry can potentially claim a Research Tax Credit for the subsequent categories:
- Internal Research & Development (IRAD) with contemporaneous documentation around the Work Breakdown Structure (WBS);
- Contract Research & Development (CRAD) with contemporaneous documentation around the Firm Fixed Price Contracts and Cost Plus Contracts; and
- B&P for RFPs.
The best way to determine if and how much of your business activities will qualify for the Research & Development tax credit or DPAD benefits, please contact us to speak with our R&D team. This team has over 25 years in the R&D industry both on the tax side and the engineering side and can provide an unparalleled level of knowledge and information to assist you.