R&D Tax Credit for General Contractors
General contractors often do not realize that they are eligible for the R&D tax credit. The Research & Development tax credit allows companies to realize tax savings, increase cash flow and stay competitive in the marketplace. Many of the qualifying activities are considered day-to-day operations for the construction industry. General contractors with a design-build team and engineers on staff will likely qualify for this incentive.
The benefits can be significant and are efficient to realize through our services. The Research tax credit can provide a hidden but immediate source of cash for construction firms from prior years, plus a significant reduction to current and future years’ federal and state tax liabilities.
Typical Qualifying R&D Tax Credit Activities:
- Design-build construction
- Value engineering
- Development of means, procedures, and building techniques
- Development and improvement of building equipment
- BIM Modeling – Designing a building collaboratively with one system of computer models
- BIM for sub-system coordination
- RFI’s – Request for Information Process
- Design quality, safety, performance, or life cycle costs
- LEED or Energy Efficient Designs
- Structure and Facility Design
- Selection of Pipe Materials
- Development and Testing of Pipe Designs
- Installation Means and Procedures
- Designing HVAC Systems
- Designing Electrical Systems
- System Detailing
- Production of shop drawings for a steel fabricator
Our Research & Development Tax Credit practice consists of engineers, CPAs, and attorneys who have extensive experience conducting R&D Tax Credit Studies at both the federal and state level. Our process begins with a free assessment to ensure that the company qualifies for the credit and would be able to utilize them. Each of our studies includes a site visit to help facilitate the study process. We also include audit support with all of our studies. This is a conservative federal and state incentive that was just made permanent by Congress as part of the 2015 PATH Act. Contact ETS for more information at 800-236-6519 or email here.