AVIATION AND AEROSPACE

Areas that can be included in Research and Development include:

 Improving Access—The unmanned aircraft system and commercial space industries continue to grow at a rapid rate, companies who are working to develop innovative solutions to safely accommodate these new entrants in a way that does not impinge upon the efficient operations of more traditional users of civil airspace could be eligible for R & D tax reclaim.

Enhancing Efficiency—This includes developing new tools to combat the challenges of adverse weather on efficient air traffic management, and employing advanced navigation technology to reduce flight time, costs, and environmental impact. Companies who also develop and apply modelling and simulation capabilities to inform CAA decision making on NextGen concepts, policies, and procedures.

Ensuring Safety—Companies who have had success in identifying potentially unsafe conditions—before accidents occur—through advanced data analytics, and continue to refine these efforts could be eligible for an R & D Claim. At the same time, companies working to develop decision aids that can better support pilots and air traffic controllers to fully understand the complex environments in which flight occurs. Companies that are adapting existing technologies to help provide real-time data to pilots and controllers that can alert them in advance to possible risks are all considered advances and hence eligible for a claim.

Strengthening Security—As aviation becomes more and more reliant on technology and interconnected systems, it is vital that we protect these systems from unauthorised or hostile activity that could disrupt operations or create safety risks. 

Aerospace engineers, technologists, designers and machinists spend a considerable amount of their time developing and improving designs that will allow their companies and their country to remain competitive in today’s marketplace. The activities conducted by the highly skilled professionals comprise of applied research such as air transportation, military operation and space-based communications. The constant technological evolution provides the opportunity for companies in these industries to take advantage of the R&D Tax Credit.

Below are some of the most common qualified R&D activities in the aerospace and aviation industry:

• Designing new aircraft and spacecraft
• Conducting design validation testing to satisfy regulatory requirements
• Generating prototypes and first articles for testing and validation
• Measures to improve product quality
• Developing new or improved manufacturing processes and technologies
• New or improved manufacturing processes
• Manufacturing plans to build aircraft components with stringent specifications or tight tolerances 
• Prototype generation for testing and validation
• New machines, fixtures, jigs, and tools for aircraft manufacturing and assembly 
• New composite materials
• New or improved metal forming, welding, and machining techniques 
• Engineering designs or kits for integration of new monuments, galleys, seats, in-flight entertainment systems into an aircraft
• New heat-treatment profiles and procedures 
• Sequencing and resequencing of manufacturing operations
• New components for customers
• Automated processes implementation
• New or improved aircraft components 
• Experiments to increase product yield and decrease cycle times
• Designing new aircraft or spacecraft 
• Developing new or improved metal forming, welding, and machining techniques
• Developing new composite materials and manufacturing methods
• Designing new jigs, dies, fixtures, and tooling
• Implementing automated processes and robotics
• Generating prototypes and first articles for testing and validation
• Developing new or improved fasteners and bonding agents
• Conducting design validation testing to satisfy regulatory requirements
• Developing new applications for engineering plastics
• Designing new methods for manufacturing avionics and cable harness assemblies
• Developing new surface treatment, passivation, and coating methods
• Developing new surface hardening methods
• Developing new alloys and powdered metallurgies
• Innovating ways to optimise strength and minimise weight
• Developing new heat treatment profiles and procedures
• Designing and developing of scaled-up manufacturing processes
• Experimenting with ways to increase product yield and decrease cycle times
• Innovating ways to improve a product quality
• Developing new or improved manufacturing processes
• Developing new or improved technologies