Main Takeaways:
- Aviation Industry Overview: The industry is growing due to air travel and investment demand. The Maintenance, Repair, and Overhaul (MRO) industry is expected to reach $104 billion by 2024, with projected annual growth of 1.8% through 2034, reaching $124 billion.
- R&D in Aviation: Focus on reducing environmental impact through hybrid power, hydrogen engines, and energy efficiency.
- R&D Tax Credit: Eligible activities include software development, experimentation with green fuels, and creation of new tools.
- FI Group’s Assistance: Specializing in financing innovation and securing funding for R&D activities, with dedicated support for companies in identifying qualified activities for R&D tax credits.
The aviation industry is primarily driven by the increasing demand for air travel and the expansion of airline fleets. These factors have resulted in a continuous rise in passenger traffic and a push for improvements in aircraft safety and fuel efficiency. It’s also worth noting the significance of the country’s military aviation sector, with the U.S Department of Defense consistently allocating substantial resources for the maintenance and modernization of military aircraft, utilizing technologies like radars and mission computers.
Within the scope of aviation, we have the Maintenance, Repair and Overhaul (MRO) sector, whose spending is expected to set a record of US$ 104 billion in 2024, according to research by OliverWyman, which also predicts growth at an annual rate of 1.8% until 2034, reaching US$ 124 billion. Aircraft MRO companies are currently focusing on improving efficiency, processes, and software to meet growing demand, and the US Avionics (which focuses on aviation electronics) MRO market was valued at approximately US$ 10.45 billion in 2023.
R&D
Currently, one of the main goals and challenges in the aviation sector is to minimize the environmental impact of aircraft. This can be achieved through the use of hybrid electric power, hydrogen engines, and increased energy efficiency. Additionally, digital and security solutions, such as time optimization and enhanced internal and external security of aircraft, are also key areas of research. As a result, there are numerous opportunities for Research and Development projects in various areas.
Some examples of qualifying activities are:
- Developing more reliable machines and processes
- Creating new precision weather software
- Improving training simulators
- Implementing technologies to accurately predict timely aircraft maintenance
- Experimenting with integrating green fuels
- Experimenting with 3D printing for supply chain and spare parts
- Developing new software using trending technology, such as artificial intelligence, to automate manufacturing processes
- Creating methods to reduce production costs and product weight
- Adding new profitable materials to optimize process/product performance
- Developing processes to meet increasing regulatory requirements
- Creating green supplies and materials
- Customizing repair and maintenance programs
- Developing efficiency and safety systems
- Creating new tools and equipment to identify problems or material stresses early
- Adjusting for new fuel and improved fuel consumption
- Flexible layout configuration
If your company engages in any of these activities, it may qualify for the R&D Tax Credit. This benefit supports the development and investment of R&D projects in the country through government tax credits. It can increase cash flow, implement dollar-for-dollar income tax reduction, and allow you to claim credits for open tax years going back 3 years.
FI Group can help you!
If your company engages in R&D activities, you can count on us: we specialize in helping companies recognize innovation and secure funding for their Research and Development (R&D) activities through the comprehensive management of R&D Tax Credits. With over 1,400 qualified employees, including specialists from different fields, we are dedicated to supporting companies of all sizes and sectors. With our expertise, FI Group specialists can help your company identify the qualifying activities carried out and access the available benefits, optimizing your research and giving it even more space and investment.
