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The economy is growing, which means the heat is on for all HVAC contractors residentially and commercially across the United States. With the economic growth comes commercial business growth as well as housing, both of which need heating and air conditioning units. Contractors in the heating, ventilation and air conditioning (HVAC) industry are constantly striving to improve new processes and products to keep up with technology and architectural trends, as well as their competition. Does your HVAC company resolve technological challenges through the innovative use of products and processes? For example, a client hiring an HVAC contractor may have a need to develop and deploy technologies that can substantially reduce their energy consumption. The contractor must then begin researching their current processes and then begin developing better more cost effective products or processes along the way. These everyday developmental activities HVAC contractors are performing are deemed pertinent R&D.

Most contractors in the construction industries, including HVAC companies, don’t know that their day to day activities can qualify them for federal, and in some cases state, R&D tax credits. Listed below are examples of the types of HVAC activities and projects most likely to contain qualified research:

  • Improving overall process to increase efficiencies

  • Pre-construction planning

  • Testing mechanical system performance

  • Conducting building information modeling (BIM) for coordination with various systems

  • Value engineering

  • Developing means, methods and fabrication techniques for sheet metal

  • Improving installation means and methods for alternative components and materials

  • Designing systems for better airflow and energy efficiency

  • Designing electrical systems for efficient power usage

  • Water drainage and management

  • Designing systems for better air filtration and humidity


Many of the activities conducted by HVAC companies qualify for the R&D tax credits, and the HVAC companies conducting these qualified activities can benefit greatly from these tax incentives

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