How can tax credits help firearms and ammunition
manufacturers during uncertain
The R&D Tax Credit was first introduced in the United States
through the Economic Recovery Tax Act of 1981.
Though this tax credit was originally only anticipated to last for
two years, the PATH Act of 2015 permanently extended the R&D
Tax Credit due to the immense value that research and
development brings to the U.S.
These credits can also be taken every year!
These R&D tax credits raise
engineering companies' bottom line,
allowing them to continue doing what
they do best - solve the world's
In order to qualify for the credit, There
is a four-part test used to determine
whether a company has a project that
qualifies for the R&D Tax Credit.
Once a company determines that their project meets these criteria, three
expense categories factor into the tax credit calculation: Wages include the
eligible portion of taxable compensation.
While almost all disciplines within
the engineering industry are capable
of qualifying for these R&D tax
One of the disciplines that routinely claim
these tax credits each year include
Firearms and Ammunition Manufacturing.
Even if a manufacturer isn't necessarily working to improve their current weapon
design, they are likely involved in R&D to reduce their production costs and
increase throughput which often qualify under the R&D Tax Credit.
Whether you own a small business, work for a
large corporation, or fall somewhere in
between - if your company operates within the
engineering industry there is a good chance
that your projects qualify for R&D Tax Credits.
LEAF Specialty Tax Consultants focus
exclusively on helping companies like
yours take advantage of R&D Tax Credits
allowing you to continue to innovate while
maximizing your profitability.
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