Firearms and Ammunition
Research and Development Tax Incentives for the Firearms and Ammunition Industry
Many companies in the firearm and ammunition industry are not aware that the government offers generous research and development (R&D) incentive programs. Even those that are aware often fail to capture the full extent of R&D tax credits that they are entitled. For example, many companies may be capturing relevant expenses from their R&D cost centers, but not all qualifying R&D activities take place in traditional R&D departments. In many companies, prototyping, process development, and testing happen in the plant or shop floor and thus may be overlooked for purposes of the R&D Tax Credit.
If your company operates in the firearm and ammunition industry, there is a strong chance that you could benefit from an R&D tax credit study. Let alliantgroup’s firearm and ammunition experts help you claim the credits you deserve!
Examples of Firearms and Ammunition Innovations Eligible for R&D Tax Incentives Include the Following:
- Developing new or improved products including small arms, tactical accessories, optics, ammunition (including non-lethal ammunition)
- Developing new or improved products utilizing new materials and finishes for enhanced durability, decreased weight, or improved function, quality, or safety
- Conducting activities including CAD design, finite element analysis, and rapid prototyping to advance the design and development of new or improved products
- Inspecting and testing prototypes, including alternative material testing
- Developing fixtures and tooling for first articles
- Developing manufacturing processes to mass-produce firearm components
- Developing or improving manufacturing processes to enhance performance or meet regulatory requirements of firearm components, ammunition, or other related items
- Designing and developing cost-effective and innovative operational processes
alliantgroup’s Firearm and Ammunition Industry Team
To better serve the firearm and ammunition industry, alliantgroup has developed an Industry Specialization Program to focus exclusively on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that comprise the firearm and ammunition industry. This specialized program employs several individuals with educational backgrounds and hands-on research experience within the disciplines of manufacturing, engineering, electronics, material sciences, lean manufacturing, and chemistry. Their focus is on qualifying and quantifying R&D tax credits for companies ranging from small firearm and ammunition manufacturing firms to large, multi-national, publicly traded corporations.
Manufacturing R&D Tax Credit Whitepaper
Download our free Manufacturing R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.
