Fueling Cutting-edge Engineering Solutions with R&D Tax Credit
The R&D tax credit is a dollar-to-dollar federal incentive driving technological innovation to keep American products and services at the forefront. It is a potential six figure incentive every year for the risks you take for activities like –
- Designing infrastructure, products and prototypes
- Using CAD to draft new designs to improve products
- Performing calculations to support design determinations
- Adapting designs to meet regulatory and sustainability requirements
- Developing new materials for products and testing their effectiveness
We’ll discuss your eligibility and help estimate your potential tax benefit.
We’ll discuss your eligibility and help estimate your potential tax benefit.
Fueling Cutting-edge Engineering Solutions with R&D Tax Credit
The R&D tax credit is a dollar-to-dollar federal incentive driving technological innovation to keep American products and services at the forefront. It is a potential six figure incentive every year for the risks you take for activities like –
- Designing infrastructure, products and prototypes
- Using CAD to draft new designs to improve products
- Performing calculations to support design determinations
- Adapting designs to meet regulatory and sustainability requirements
- Developing new materials for products and testing their effectiveness
Success Stories
Companies claiming the R&D Credit saved more with alliantgroup!
Multi-Disciplinary Engineering Firm
Previous Credit Value:
$460,000
alliantgroup CREDIT VALUE:
$1,600,000
248% Increase
ANNUAL REVENUE:
$51 Million
MEP Engineering Firm
Previous Credit Value:
$145,000
alliantgroup CREDIT VALUE:
$268,000
85% Increase
ANNUAL REVENUE:
$13 Million
Structural Engineering Firm
Previous Credit Value:
$46,000
alliantgroup CREDIT VALUE:
$206,000
347% Increase
ANNUAL REVENUE:
$7 Million
Multi-Disciplinary Engineering Firm
ANNUAL REVENUE:
$51 Million
Previous Credit Value:
$460,000
alliantgroup CREDIT VALUE:
$1,600,000
248% Increase
MEP Engineering Firm
ANNUAL REVENUE:
$13 Million
Previous Credit Value:
$145,000
alliantgroup CREDIT VALUE:
$268,000
85% Increase
Structural Engineering Firm
ANNUAL REVENUE:
$7 Million
Previous Credit Value:
$46,000
alliantgroup CREDIT VALUE:
$206,000
347% Increase
Importance of
R&D Tax Credit
The R&D Tax Credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is now the most powerful permanent tax credit available. As competition within the American marketplace continues to intensify, companies need to utilize every resource they can. This credit intends to support American innovators so they can reallocate funds back into their businesses to help with the following:
- Retaining and attracting more technical talent
- Growth strategy
- Remaining competitive
R&D Tax Credit 5 Myths and Misunderstandings
Unfortunately, only one out of twenty small- to medium-sized companies eligible for this credit take advantage of it. Here are some of the myths that hold them back:
- The tax credit is only for companies that invent something new
- This benefit is for businesses with research labs
- The credit won’t help me with my state taxes or bottom line
- It’s too good to be true
- There will be tax reform, and the R&D credit will go away
WHITEPAPER
Your Checklist for R&D Providers
R&D | Providers Checklist
Please complete the form below to download the R&D providers checklist and find what will work best for your business
Why alliantgroup?
We are the leading experts in tax credits and incentives. Since 2002, we have helped US businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
800+ Industry Experts
Our professionals know your business inside and out and know what qualifies to ensure the most lucrative refund. No other firm offers professionals versed in your industry.
Five Former IRS and Division Commissioners
Our former commissioners are the preeminent experts on IRS policy and ensure our practices and procedures align with the service’s expectations. No other firm offers this level
of oversight.
Former Legislators
Our former policymakers understand the intent of tax law and why they apply to your business. As part of our team, they advocate for our clients and help them take advantage of federal funds. No other firm understands tax law to this extent.
Let's get started today
Schedule a free consultation with our team of experts.
We’ll discuss your eligibility and help estimate your potential
tax benefit.
Are you an Engineering Firm feeling the financial strain of current tax changes?
The Challenge: Increased Tax Payments under Section 174
Engineering firms are facing a significant financial burden due to changes in Section 174 of the tax code. This provision now requires the amortization of R&D expenses over five years, rather than allowing them to be expensed immediately. The result? Increased taxable income and higher tax payments.
The Solution: Leverage the R&D Tax Credit
The good news is, the R&D Tax Credit can offset these increased tax liabilities. By identifying and claiming your qualifying research activities, you can significantly reduce your tax payments and reinvest in your business.
alliantgroup can help! Schedule time to meet today.
Why the R&D Tax Credit?
Immediate Savings
Lower your tax bill this year.
Boost Innovation
Free up capital to invest in
new projects.
Stay Competitive
Keep your edge in a fast-paced industry.
Find Out If You are Eligible
Let our tax credit consultants evaluate your business and help you understand how this tax credit can genuinely benefit you.
How alliantgroup Can Help
At alliantgroup, we specialize in maximizing R&D tax credits for engineering firms. Our team of experts will:
- Evaluate Your Activities: Determine which of your R&D activities qualify.
- Document Thoroughly: Ensure all necessary documentation is in place.
- Optimize Your Claim: Maximize your credit for the highest possible savings.
Don't leave money on the table.
With Section 174 impacting your bottom line, now is the time to act. Let alliantgroup help you navigate these changes and secure the tax savings you deserve.
Are you an engineering firm feeling the strain of Section 174? alliantgroup can help.
How is Section 174 impacting engineering firms?
While Section 174 has always provided for full deductibility of R&D expenses, recent changes have required engineering firms to amortize these expenses. This has challenged many such companies with tax bills greater than in years past.
So what options do I have?
With the impact of amortization on engineering firms, the R&D credit is a powerful solution for offsetting increased tax payments affecting your bottom line. The credit was put into place to reward engineering firms for their day-to-day activities, ultimately increasing growth and competitiveness. Work that you do every day, such as modeling systems, developing prototypes, or creating computer-aided designs, can generate powerful refunds via this incentive.
How can I take action?
In our 20+ years of serving U.S. businesses, alliantgroup has secured this credit for tens of thousands of enterprises spanning multiple industries, many of which were unaware they even qualified for it. Our experts are ready to guide you through the new reality of Section 174 for engineering firms, so you can determine the best way to preserve your hard-earned capital.
Book a meeting today
Are you an engineering firm feeling the strain of Section 174? alliantgroup can help.
How is Section 174 impacting engineering firms?
While Section 174 has always provided for full deductibility of R&D expenses, recent changes have required engineering firms to amortize these expenses. This has challenged many such companies with tax bills greater than in years past.
So what options do I have?
With the impact of amortization on engineering firms, the R&D credit is a powerful solution for offsetting increased tax payments affecting your bottom line. The credit was put into place to reward engineering firms for their day-to-day activities, ultimately increasing growth and competitiveness. Work that you do every day, such as modeling systems, developing prototypes, or creating computer-aided designs, can generate powerful refunds via this incentive.
How can I take action?
In our 20+ years of serving U.S. businesses, alliantgroup has secured this credit for tens of thousands of enterprises spanning multiple industries, many of which were unaware they even qualified for it. Our experts are ready to guide you through the new reality of Section 174 for engineering firms, so you can determine the best way to preserve your hard-earned capital.
Book a meeting today
Success Stories from Our Clients
Structural Engineering Firm
ANNUAL REVENUE:
$71 Million
TOTAL CREDITS EARNED:
$650,000
Environmental Engineering Firm
ANNUAL REVENUE:
$21 Million
TOTAL CREDITS EARNED:
$524,000
Electrical Engineering Firm
ANNUAL REVENUE:
$44 Million
TOTAL CREDITS EARNED:
$240,000
Civil Engineering Firm
ANNUAL REVENUE:
$50 Million
TOTAL CREDITS EARNED:
$800,000
Multi-Disciplined Engineering Firm
ANNUAL REVENUE:
$65 Million
TOTAL CREDITS EARNED:
$1,100,000
Mechanical Engineering Firm
ANNUAL REVENUE:
$20 Million
TOTAL CREDITS EARNED:
$239,000
WHITEPAPER
R&D | Providers Checklist
Please complete the form below to download the R&D providers checklist and find what will work best for your business
Why engineering companies trust alliantgroup
Thousands of engineering companies, from MEP engineers to structural consultants, have used alliantgroup to claim the R&D credit. With our turnkey process, you can expect a thorough evaluation of engineering activities and costs, leading to a maximized and substantiated credit. Additionally, our industry experts can guide you and your CPA through all facets of the credit, from documenting your claim to claiming your refund.
800+ IndustryExperts
Five Former IRS and Division Commissioners
FormerLegislators
Hear from our clients
We’ve been able to claim back money that we didn’t even know we could, which has had a huge impact on our business. We are now able to put that money towards more R&D activities, which has helped us to stay ahead of the competition in our industry.
Hydraulic Engineering Consulting Firm
# of Employees:
72
I am extremely grateful alliantgroup was recommended to us. Everything was explained clearly and in detail, taking up very little of our time, but giving us the confidence we needed to make sure everything was done properly.
Structural Engineering Firm
# of Employees:
145
We’ve been able to claim back money that we didn’t even know we could, which has had a huge impact on our business. We are now able to put that money towards more R&D activities, which has helped us to stay ahead of the competition in our industry.”
Diane N
Hydraulic Engineering Consulting Firm
$159k in Federal Credits (One Year)
I am extremely grateful alliantgroup was recommended to us. Everything was explained clearly and in detail, taking up very little of our time, but giving us the confidence we needed to make sure everything was done properly.”
Gregory B
Structural Engineering Firm
$120k in Federal and State Credits (One Year)
ABC FIRM, NEW YORK
20 EMPLOYEES
Additional Information
The Research and Development (R&D) tax credit continues to provide one of the best opportunities for U.S. businesses to reduce their tax liability substantially. Companies from almost all industries can qualify for this government-sponsored tax benefit just by performing their day-to-day activities. This government-sponsored tax incentive, as prescribed in 26 U.S.C. § 41, may be claimed by taxpaying businesses that develop, design, or improve products, processes, formulas, or software.
The credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is calculated based on the wages of the employees performing the qualifying work, making it the most valuable, permanent tax incentive available to American businesses. Furthermore, it can be claimed at the federal and state levels, with over 30 available state credits.
This works for businesses of all sizes, not just major corporations with research labs. What constitutes R&D concerning the credit is much more expansive than business owners realize.
Several factors go into claiming the research and development tax credit. Companies may claim the credit for both current and prior tax years, and documenting their R&D activities can help ensure that they are eligible to claim the credit for all open years.
Businesses need to continuously evaluate and document their research activities to authenticate the costs incurred for each qualified research activity. While some estimations may be involved, they must have a genuine basis for the assumptions used to create those estimates.
Examples of documentation include:
- Payroll records
- General ledger expense detail
- Project lists
- Project notes
- Documents produced through the normal course of business
These records, coupled with credible employee testimony, can form the basis of an R&D tax credit claim. Our comprehensive process can quickly identify and gather this information to substantiate your claim, ensuring you receive the total value you are entitled to under relevant I.R.S. guidelines and Treasury regulations.
Wage, supply, contractor, and computer costs are the major buckets that form the basis of an R&D credit claim.
Established in 1981, the Research & Development tax credit has gradually evolved, with new legislation, regulations, and judicial precedent expanding the number of businesses that can benefit from the credit.
The most impactful changes have occurred within the last two decades.
2003
With the removal of the Discovery Rule, a new and much more favorable standard was introduced, which stated that research activities no longer had to be “new to the world“ but only “new to the taxpayer. “
2015
The Protecting Americans from Tax Hikes (PATH) Act made the R&D credit permanent so businesses could rely on it every year!
CONGRESS AGREES TO RETURN THE R&D TAX CREDIT BACK TO FULL STRENGTH
The House Ways and Means Committee recently passed a bill to fix 174 amortization, making the R&D credit more lucrative for businesses. Claiming the credit now can amount to six to seven figures of benefit.
If your company does any of the following, your business likely qualifies for the R&D credit:
- Designing and developing schematics
- Performing calculations to test design changes
- Improving designs to meet regulatory requirements
DOWNLOADABLE RESOURCE
The Fate of R&D Tax Credit
ERC | The Fate of ERC
Contact us to receive more information about the Employee Retention Credit
Importance of
R&D Tax Credit
The R&D Tax Credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is now the most powerful permanent tax credit available. As competition within the American marketplace continues to intensify, companies need to utilize every resource they can. This credit intends to support American innovators so they can reallocate funds back into their businesses to help with the following:
- Retaining and attracting more technical talent
- Growth strategy
- Remaining competitive
R&D Tax Credit 5 Myths and Misunderstandings
Unfortunately, only one out of twenty small- to medium-sized companies eligible for this credit take advantage of it. Here are some of the myths that hold them back:
- The tax credit is only for companies that invent something new
- This benefit is for businesses with research labs
- The credit won’t help me with my state taxes or bottom line
- It’s too good to be true
- There will be tax reform, and the R&D credit will go away
Our Process
1.
A risk-free, no-cost assessment
2.
Qualifying research projects
3.
Quantifying associated research expenditures
4.
Calculation of credit and drafting of substantiation
Why alliantgroup?
We are the leading experts in tax credits and incentives. Since 2002, we have helped U.S. businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
800+ Industry Experts
Our professionals know your business inside and out and know what qualifies to ensure the most lucrative refund. No other firm offers professionals versed in your industry.
Five Former IRS and Division Commissioners
Our former commissioners are the preeminent experts on IRS policy and ensure our practices and procedures align with the newest guidance. No other firm offers this level
of oversight.
Former Legislators
Our former policymakers understand the intent of tax law and why they apply to your business. As part of our team, they advocate for our clients and help them take advantage of federal funds. No other firm understands tax law to this extent.
Why Businesses Choose alliantgroup
Hear from a client how we helped increase his bottom line.
Let's get started today
Schedule a free consultation with our team of experts.
We’ll discuss your eligibility and help estimate your potential
tax benefit.
How Engineering Companies Qualify for R&D
Get Refunds for Solving
Everyday Problems
Here are a few activities that qualify businesses in the ENGINEERING sector:
- Creating designs for buildings, bridges, roadways and other types of infrastructure;
- Designing and developing schematics;
- Performing evaluations and system tests to ensure optimal functionality;
- Performing calculations to support design determinations; and
- Adapting designs to meet regulatory requirements.
Activities mentioned can qualify you for lucrative incentives and substantial tax savings in the form of Section 41 credits.
Keep reading to learn about the biggest permanent tax break available to the engineering industry and how you can claim it while filing taxes.
NEED HELP WITH
R&D CREDIT?
Fill out the form to receive more information
R&D | Service Page / Contact-Us
Contact us to receive more information about the R&D Tax Credit.
Real Results from Engineering Firms
ELECTRICAL ENGINEERING FIRM
Annual Revenue: $44 MM
Received: $240,000 credits
ENVIRONMENTAL ENGINEERING FIRM
Annual Revenue: $21 MM
Received: $524,000 credits
STRUCTURAL ENGINEERING FIRM
Annual Revenue: $71 MM
Received: $650,000 credits
How the R&D Tax Credit Helps Engineering Firms
The R&D Tax Credit remains in place as one of the most valuable incentives available for the benefit of engineering firms. As new problems are tackled, and as firms adapt to the new landscape, the innovations brought forward by engineers qualify for the R&D Tax Credit. Engineering firms across America are being refunded with these lucrative tax credits for their efforts toward improving the quality of services, processes, and products.
How the R&D Tax Credit can Offset Supply Chain Disruptions
The global events in the past two years have affected many industries across the U.S., including engineering firms. Many firms faced disruptions, like material shortages, project delays, and extra labor costs. This is where the R&D Tax Credit can play a crucial role by helping engineering firms leverage federal incentives to stay ahead. Engineering firms can use this permanent incentive to invest in new technology, optimize labor costs, retain talent, accelerate growth, and increase competitiveness in the industry.
WHITEPAPER DOWNLOAD
R&D Tax Credit: Driving Innovation and Job Creation
R&D | 5 Myths Dispelled Whitepaper Download (Software & Tech)
Fill out the form to receive your free Whitepaper
Hear from our clients
I decided to partner with alliantgroup which resulted in an incredibly positive experience. I felt that their professionals understood my business and I was confident that alliantgroup was working in my company’s best interest. The outcome of the R&D Tax Credit was certainly worth my time, and I would highly recommend alliantgroup to anyone interested in undertaking the R&D Tax Credit.
ENGINEERING FIRM, IN
Every stage from the sales process to the final numbers has been well-approached and professional. We were always kept in the loop, always knew the schedule and were aware of our place within the timeline. The coordinated effort your team made to hand-off information to each other ensured that someone was always facilitating our progress. From our experience, I can refer to your services as “exemplary”.
ENGINEERING FIRM, AZ
Calculate Your R&D Tax Credit
In 2021 alone, alliantgroup delivered over $2.3 billion in credits and incentives to over 14,000 businesses. And we do not want to stop here without helping you. Let our experts research and provide information that you need to understand how this credit can genuinely benefit your business
We have created a quiz to help you get a head start on estimating your credit.
Take our short quiz to get an idea of what this benefit can look like for your business today!
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Ready to get started?
Schedule a free consultation with our team of experts to learn more.
We’ll discuss your eligibility and help estimate your potential tax benefit.