Architecture
Research and Development Tax Incentives for the Architecture Industry
Architecture firms are in a unique position to claim tax incentives ranging from the R&D Tax Credit to the Energy-Efficient Commercial Building Deduction (179D) and IC-DISC, for firms that export their designs to foreign countries.
The Energy Efficient Commercial Building Deduction
In order to counter problems that we are facing in energy, Congress passed the Energy Policy Act of 2005 that created a tax incentive that relates to the design and installation of energy efficient interior lighting, HVAC, hot water, or building envelope systems in commercial buildings. Through this incentive found in section 179D of the Internal Revenue Code, qualifying businesses can receive up to $5.00 per square foot in deductions for eligible projects placed into service any time from 2019 to 2023. Click here to learn more about how your firm’s projects may qualify for 179D.
The R&D Tax Credit
Architecture firms can attest that designing a building is not all about aesthetic design. However, the firms’ principals and officers may be unaware that the expenses associated with the development of unique functional and energy-efficient designs may allow them to take advantage of significant research and development (R&D) tax incentives. With the increase in sustainable and “green” designs incorporated into building features, architecture firms are expending more time and effort in the design phase of projects to achieve optimal energy-efficient and functional designs. If you think you have to be a manufacturer or software developer to be conducting qualified activities as defined by the Internal Revenue Code, think again.
If your firm is in the architecture industry, there is a strong chance that you could benefit from an R&D Tax Credit study. Let alliantgroup’s architecture experts help you claim the credits that you deserve!
Examples of Activities & Innovations Eligible for R&D Tax Incentives Include the Following:
- Developing unique energy efficient features
- Designing master plans
- Developing schematic designs
- Developing planning and elevation drawings
- Designing a functional site plan to incorporate or overcome the site plan features
- Developing construction documents
- Designing and developing building facades
- Achieving LEED certification
- Designing building systems
- Designing site orientations
- Designing building shape and form
alliantgroup’s Architecture Industry Specialization Team
In order to better serve architecture firms, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the architecture industry. alliantgroup’s Architecture Specialization Team employs several individuals who have educational backgrounds and practical experience within the disciplines of architecture and design. alliantgroup has qualified and quantified credits for firms ranging from small startup firms to large, multi-national architecture firms.
Download our free R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.
