How the R&D credit applies to aerospace and aviation companies
The federal R&D tax credit rewards engineering work that tries to improve a product or process and involves testing. Aerospace and aviation suppliers do this constantly: new parts, new materials, new systems and new ways to repair or modify equipment. Much of it is never called research, and it often sits inside customer programs.
Florida aerospace and aviation companies claim the credit on their federal returns. Many are S corporations or LLCs, so the credit passes through to the owners, and your CPA files it with the return.
Work that often qualifies
Designing or redesigning components, assemblies and systems
Testing new materials, coatings and manufacturing methods
Developing tooling, fixtures and test equipment
Developing modifications or repair methods that did not exist before
Building and testing prototypes, including those that failed
Work that usually does not
Maintenance and inspections done to published procedures
Building parts to a finished drawing with no development work
Paperwork and routine quality records
Costs that count
Wages for engineers, technicians and machinists doing the work count, along with materials and supplies used in testing, and a share of what you pay outside contractors. Where customers fund the work, who bears the risk matters, so we review contracts early. We tie each cost to a specific project so your CPA has a file that holds up if the IRS asks.
What to have ready
A list of programs, parts and development projects from the last few years
The people who worked on them and roughly how much time they spent
Customer contracts for development work, if any
Test records, drawings and notes from the work
You do not need all of this to start. The free screening takes 5 to 10 minutes and tells you whether a full study is worth it.
We also work with aerospace and aviation companies outside Florida. The federal credit works the same in every state, and we run the screening remotely or in person.
Find out what your work has earned
Free 5 to 10 minute screening. See which of your projects can earn a credit.
Why us
Why businesses choose Strategic Incentive
We are a Sarasota firm that pairs R&D credit specialists with a practicing CPA, so every study is built for the return it feeds.
A CPA partner behind every study
A practicing CPA is part of our team, so the work is built for the return it feeds.
Project-level documentation
Each qualifying project is documented on its own, not covered by boilerplate.
An audit-ready file
Your CPA gets the calculations, narratives and records in one organized package.
How it works
How a study works
Four steps from the first screening to a filed, audit-ready claim.
1
Free screening
A 5 to 10 minute screening based on the IRS four-part test. We review your answers and estimate whether a credit is likely.
2
Discovery interview
A guided conversation and a questionnaire built for your business document each qualifying project.
3
Calculation
We calculate the credit and prepare Form 6765 support, project narratives and employee time allocations.
4
CPA hand-off
We work with your CPA or tax preparer and hand over an audit-ready package. If the IRS asks questions, we respond.
FAQ
Common questions
Straight answers before you start a screening.