Does Your Engineering Firm Qualify for the R&D Tax Credit?

Did you know that your engineering firm could qualify for the federal Research and Development (R&D) Tax Credit? Many engineering firms may be unaware of the applicable tax benefits that come with the R&D tax credit – but Engineered Tax Services can help. The R&D tax credit allows companies to take advantage of tax savings, increase cash flow, and stay competitive in the industry and marketplace. Many of the qualifying activities are considered daily operations for the construction industry. Engineering firms with a design-build team and engineers on staff will also likely qualify for this great incentive. The R&D tax credit can provide an immediate source of cash for construction firms from prior years, plus a significant reduction to current and future years’ federal and state tax liabilities.

Components to Qualify

  • Expense of direct wages
  • Expense of supplies consumed
  • Cost of contract research

Qualifying Activities

  • BIM Modeling – Designing a building collaboratively with one system of computer models
  • Determining alternative structural design
  • Improving or determining substitute heating and air conditioning systems
  • Improving or developing substitute ventilation
  • Developing or improving lighting
  • Sustainable design
  • New technology
  • Value engineering
  • Development of substitute electricity conduction systems
  • Space management to determine type and scale of facilities
  • Design performance testing
  • Development of alternative water flow/plumbing systems
  • Integrating transport systems into the design of a structure
  • New material testing – measurement of the characteristics and behavior of such substances
  • Environmental design
  • Environmental impact studies
  • Incorporating waste disposal processes into the structure

The R&D team at Engineered Tax Services is made up of experienced CPAs, engineers, and attorneys who have extensive knowledge of how to conduct R&D studies at state and federal levels. The process begins with a free assessment to ensure that the company qualifies for the credit. Each study includes a site visit to help facilitate the process. Our team also includes audit support with all of our studies. This is a conservative federal and state incentive made permanent by Congress as part of the 2015 PATH Act. You can learn more about how the R&D tax credit can benefit you in this video, with our National Director and R&D Specialist, David Mayer, CPA:

Please contact Engineered Tax Services for more information at (800) 236-6519.

Engineered Tax Services

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