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Building Tax Savings: R&D Tax Credits in the Construction Industry

The construction industry is in a constant state of evolution, shaped by groundbreaking technological advancements. In this transformative era, research and development (R&D) tax credits have emerged as a cornerstone for growth, allowing construction firms to explore new frontiers in efficiency, sustainability and innovation.

construction industry

The Role of R&D Tax Credits in Construction

Government-backed R&D tax credits are financial incentives designed to spur innovation within the construction sector. By offsetting the costs associated with developing new construction techniques, materials and processes, these credits foster a culture of ingenuity and creativity, allowing firms to build smarter, faster and more economically.

Qualifying R&D Activities

Within the construction industry, a wide array of activities may qualify for R&D tax credits, including but not limited to: 

  • Innovative construction techniques—developing new methods like modular construction, unique joining techniques or advanced scaffolding solutions
  • Sustainability and energy efficiency—researching and creating energy-efficient systems or integrating renewable energy sources
  • Site-specific challenges—researching solutions for unique environmental conditions or site constraints that require specialized engineering
  • Construction safety innovations—developing cutting-edge safety equipment or technology for better monitoring and accident prevention
  • Waste reduction and recycling—investigating and innovating in waste reduction techniques or the incorporation of recycled materials
  • Custom construction solutions—researching and designing construction solutions tailored to specific projects or client needs
  • Historical restoration and preservation—utilizing new techniques or technologies to preserve or restore historical structures

Eligible R&D Expenses

R&D tax credits cater to an array of specific costs within the construction industry, including:

  • Construction methodology expenses—costs for designing, testing and innovating in construction techniques or equipment
  • Material testing and analysis—costs associated with testing new materials or researching more efficient materials
  • Construction labor costs—wages for personnel involved in innovation, including engineers and site supervisors
  • Third-party contractors and consultants—fees for specialized consulting, site analysis or prototyping
  • Construction-specific software expenses—development, customization or integration of construction management software
  • Green building expenses—costs for researching and implementing green building practices, energy-efficient construction or sustainability certifications
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r&d tax credit guide

Speak with a Specialist

Are you ready to explore the untapped potential of R&D tax credits in your construction business? Contact Engineered Tax Services today and discover how our experts can help you unlock significant tax savings, fueling innovation and growth in your projects. Together, we can build a brighter future.

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