Engineering

RESEARCH AND DEVELOPMENT TAX INCENTIVES FOR THE ENGINEERING INDUSTRY

The complexity of modern structures often requires a great deal of innovation from the engineers in order to ensure the structures support and resist the loads and forces they are subjected to, whether those forces are related to the intended use of the structure, environmental stresses, or other issues. Engineering firms may not realize that the design and development activities of creating structural, mechanical, and electrical systems for unique buildings and structures may constitute qualified R&D activities, potentially entitling them to significant R&D incentives.

If you think you have to be operating in a laboratory to qualify for R&D tax credits as defined by the Internal Revenue Code, think again. If your firm is in the engineering industry, there is a strong chance that you could benefit from an R&D Tax Credit study. Speak to our engineering experts to help you understand if your activities qualify for the R&D credit.

Examples of activities eligible for R&D Tax Credit:

  • Determining alternate materials with which to construct a structure or parts of a structure (must be a new concept to the taxpayer)
  • Determining alternate means of assembling and/or fastening component parts of a structure (must be a new concept to the taxpayer)
  • Improving acoustical qualities of structure
  • Developing alternative water flow / plumbing systems
  • Developing alternative electricity conduction systems
  • Developing or improving lighting within a structure
  • Improving or developing alternative ventilation for a structure
  • Improving or determining alternative heating and cooling systems
  • Determining alternative structural design
  • Developing processes or equipment for the extraction of natural elements from another substance, or the development of processes and equipment to convert the extracted materials
  • Developing a pilot plant to investigate the concepts of a model or process
  • Ensuring that toxic waste and other waste disposal processes integrated into the structure
  • Integrating product and material transportation systems into the functional design of the structure
  • Conducting environmental impact studies
  • Incurring integration costs related to designing multiple co-dependent features, where the technical uncertainty may only be eliminated by designing the related components
  • Implementing┬ácounter-terrorism capabilities
  • Conducting environmental design
  • Conducting sustainable design
  • Performing space utilization
  • Experimenting with new materials and technologies
  • Performing CAD modeling
  • Practicing design testing
  • Conducing special use design
  • Performing harsh environment design & testing
  • Conducting BIM modeling
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