It’s about time architecture and engineering firms took a break – a tax break that is. Despite the broad range of eligibility criteria for R&D tax credits in the U.S., many A&E firms do not take advantage of these tax savings. There is often a misconception that architectural and engineering design development does not qualify for the R&D tax credit, costing them valuable funding that could be reinjected into other future projects.
While most architecture and engineering firms are already performing eligible activities, identifying and documenting them according to government requirements can be challenging.
Claiming the R&D tax credit can yield significant funding towards past and future investments and projects, but the activities must be properly positioned and supported for a claim to be accepted. A&E firms that recognize the benefits of claiming the tax credit will offset some of the costs associated with performing the type of activities that are required for them to stay ahead of the competition. The rest will likely fall behind, losing market share as the cost of innovating continues to increase.
Firms focused on providing cutting-edge architecture, engineering and technology to consumers cannot afford to miss out on building their own sustainable growth along the way.