This article summarizes reporting by Aerospace America.

The American Institute of Aeronautics and Astronautics (AIAA) has called on the U.S. Congress to establish long-term tax policy stability to protect private-sector aerospace innovation, warning that frequent legislative shifts threaten capital-intensive defense and technology development.

In an analysis published on June 15, 2026, by the institute’s publication, Aerospace America, the AIAA highlighted the critical role of Internal Research and Development (IR&D). The organization noted that while the July 2025 passage of the One Big Beautiful Bill Act (OBBBA) resolved immediate concerns by restoring full expensing for domestic research, the broader pattern of unpredictable tax treatment discourages the long-duration investments required for advanced aerospace capabilities.

The role of independent research in aerospace

Aerospace America emphasized that IR&D occupies a unique position in the defense and aerospace sectors, operating outside standard market forces and direct government control. The publication described this independent research as a commitment by private companies to advance technology using their own resources, frequently preceding official government contracts or requirements.

Amid rising geopolitical competition and the high costs of advanced capability development, the U.S. relies heavily on private companies to assume independent research risks, according to the institute’s analysis.

Legislative fixes and remaining uncertainty

The aerospace industry faced a structural disincentive for innovation beginning after December 31, 2021, when the 2017 Tax Cuts and Jobs Act (TCJA) required companies to amortize domestic research and development expenses over five years.

Congress reversed this requirement on July 4, 2025, with the enactment of the OBBBA. The legislation introduced Section 174A to the Internal Revenue Code, permanently restoring immediate expensing for domestic research costs for tax years beginning after December 31, 2024. The Internal Revenue Service (IRS) subsequently released procedural guidance (Rev. Proc. 2025-28) on August 28, 2025, allowing businesses to accelerate deductions for costs previously capitalized under the TCJA rules.

Despite the legislative fix, foreign research and experimental expenditures must still be amortized over a 15-year period. Aerospace America cautioned that the overarching issue remains the volatility of the tax code. The publication noted that frequent policy shifts generate uncertainty, which can deter the sustained financial commitments necessary for complex aerospace programs.

AirPro News analysis

The AIAA’s focus on tax predictability underscores a fundamental tension in aerospace manufacturing: the mismatch between political cycles and aircraft development timelines. A clean-sheet aircraft or next-generation defense system requires a decade or more of sustained capital investment before generating revenue. When tax incentives for research and development fluctuate on two- or four-year legislative cycles, original equipment manufacturers (OEMs) and their supply-chain struggle to forecast long-term capital allocation. We view the permanent restoration of domestic expensing under Section 174A as a necessary baseline, but the AIAA is correct that true innovation requires a tax environment as stable as the engineering programs it aims to support.

Sources: Aerospace America

Swiss battery manufacturer H55 delivered its certification-grade Adagio Battery Modules to Pratt & Whitney Canada on June 9, 2026, marking a critical hardware transition for the RTX Hybrid-Electric Flight Demonstrator program.

The delivery, announced in an H55 press release, transitions the 200 kilowatt-hour (kWh) energy storage system from technology development to active aircraft integration. The demonstrator is based on a modified De Havilland Aircraft of Canada Dash 8-100 regional turboprop. The program targets a 30 percent improvement in fuel efficiency and an equivalent reduction in carbon dioxide emissions compared to current regional Commercial-Aircraft.

Integration and testing timeline

The RTX demonstrator propulsion system pairs a Pratt & Whitney Canada thermal engine with a 1-megawatt electric motor developed by Collins Aerospace. H55’s battery modules will power the electric motor during optimized phases of flight to reduce the load on the thermal engine.

Pratt & Whitney Canada initially selected H55 to provide the battery pack for the regional hybrid-electric flight demonstrator program on May 19, 2022. The integrated hybrid-electric Propulsion system and batteries subsequently completed a first full-power ground test on June 16, 2025. With the production-conforming modules now delivered to the Pratt & Whitney Canada facility in Montreal, the program moves toward final integration and flight testing. AeroTEC will support the flight test campaign at its facility in Moses Lake, Washington.

Certification-grade architecture

In March 2026, H55 confirmed that Pratt & Whitney Canada built the demonstrator’s compliance baseline on the H55 architecture. The system has accumulated more than 2,000 flight hours and undergone validation through European Union Aviation Safety Agency (EASA) test campaigns.

H55 Co-Founder and Chief Technology Officer Sébastien Demont emphasized the industry requirement for industrialized manufacturing and operational reliability as Electric-Aviation matures.

“Aircraft Manufacturers today require more than battery technology. They require certification-grade safety architecture, industrialized manufacturing, operational reliability and scalable systems integration. Delivering production-conforming modules into the RTX Hybrid-Electric Flight Demonstrator validates H55’s ability to meet those requirements at an industrial scale and marks an important step in bringing our certification-grade energy storage technologies to a broader range of commercial aerospace applications.”

AirPro News analysis

The delivery of flight-ready, certification-grade hardware remains a significant bottleneck in aerospace electrification. By supplying modules that already align with EASA validation frameworks, H55 reduces the certification risk for the broader RTX demonstrator program. We view the integration of a 1-megawatt electric motor with a 200 kWh battery system on a Dash 8-100 airframe as a highly pragmatic testbed. It allows the industry to evaluate thermal management, battery degradation, and hybrid power-sharing in a representative regional airline profile before committing to clean-sheet aircraft designs.

Sources: H55

The German Aerospace Center (DLR) is showcasing its latest advancements in climate-compatible aviation, space security, and human space exploration at the International Aerospace Exhibition (ILA) Berlin, running from June 10 to 14, 2026.

In collaboration with the European Space Agency (ESA) and the German Aerospace Industries Association (BDLI), DLR is presenting physical research aircraft, engineering simulators, and space exploration technologies at the Berlin ExpoCenter Airport. The exhibition highlights Germany and Europe’s strategic push toward aerospace autonomy and sustainable aviation technologies, according to a press release issued by DLR.

Aviation research and the D328 UpLift testbed

A central focus of DLR’s aviation exhibition is the integration of digital simulation with physical flight testing. The organization is displaying several research aircraft on the ILA Plaza, including the In-flight Systems & Technology Airborne Research (ISTAR) Dassault Falcon 2000LX and the D328 UpLift flying testbed, a modified Dornier 328-100.

Inside the exhibition halls, DLR is operating the ESIM2 engineering simulator. Anke Kaysser-Pyzalla, Chair of the DLR Executive Board, stated that the organization is presenting both the reality and the simulation of the D328 UpLift project for the first time by pairing the physical aircraft on the plaza with a true-to-life engineering simulator of a Dornier 328 cockpit at the DLR stand.

This dual approach supports broader industry efforts to streamline aircraft development. On June 10, 2026, Aviation Week reported that DLR is utilizing the UpLift flying testbed to explore “certification by analysis” methodologies. These methodologies aim to mature aviation technologies sooner by relying on advanced digital modeling validated by targeted physical flight tests.

Space exploration and the new control center

In the space sector, DLR is co-hosting the Space Pavilion alongside ESA and BDLI under the slogan “Space4Future.” The pavilion focuses on Earth observation, planetary defense, and in-space operations. Anne-Sophie Bradelle, Head of the ESA Communication Department, noted that the joint exhibition demonstrates Europe’s achievements in space and strengthens the region’s autonomy in the current geopolitical environment.

DLR is also detailing its plans for the new Human Exploration Control Center (HECC). In February 2026, DLR received 58 million euros in funding from the Free State of Bavaria for the facility’s construction. The organization has allocated an additional 20 million euros from its institutional core funding for the project.

Construction of the HECC is scheduled to begin in 2028 in Oberpfaffenhofen, Germany, with operations slated to start in 2030. Visitors to the DLR stand can view insights into the emerging control center alongside other space technologies, including the Martian moon rover Idefix and the MAPHEUS sounding rocket programme.

AirPro News analysis

We view DLR’s emphasis on “certification by analysis” and physical testbeds like the D328 UpLift as a critical step for the European aerospace sector. By bridging the gap between digital simulation and physical flight testing, research institutions can help original equipment manufacturers (OEMs) reduce the time and cost associated with bringing sustainable aviation technologies to market. The substantial regional and institutional investment in the HECC also signals a long-term commitment to maintaining European autonomy in human spaceflight operations.

Sources: German Aerospace Center (DLR)