CONSTRUCTION

For more than a century, the construction industry has been considered the “backbone of America.”  And yet, most construction companies are simply unaware that there are state and federal government programs that offer lucrative research and development (R&D) incentive programs. Other companies are aware of the R&D Tax Credit, but fail to take full advantage due to misunderstanding the types of business behaviors that qualify.

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The reality is that a broad range of common construction industry practices will qualify for the credit under the Internal Revenue Code’s definition of R&D.  Research and development is not limited to the work of scientists wearing lab coats.  Construction industry specialists, engineers, designers, and machinists often spend a substantial portion of their time developing superior designs and manufacturing practices in an effort to remain competitive. These continuous activities provide substantial opportunities for companies to take advantage of available credit and incentive programs.

If your company is in the construction industry and is involved in any of the following activities, you may be able to claim the R&D tax credit:

• Exploring means and methods and construction techniques

• Preparing structure and facility design for constructability

• Developing and improving construction equipment development

• Designing LEED/green initiatives; Designing HVAC systems

• Analyzing the functions of a design directed at improving performance, reliability, quality, and safety

• Performing Request for Information Process (RFI’s)

• Improving mechanical equipment sizing