Engineering
Research and Development Tax Incentives for the Engineering Industry
The complexity of modern structures often requires a great deal of innovation from the engineers in order to ensure the structures support and resist the loads and forces to which they are subject, whether those forces are related to the intended use of the structure, environmental stresses, or other issues. Engineering firms may not realize that the design and development activities of creating structural, mechanical, and electrical systems for unique buildings and structures may constitute qualified R&D activities, potentially entitling them to significant R&D incentives.
If you think you have to be operating in a laboratory to qualify for R&D tax credits as defined by the Internal Revenue Code, think again. If your firm is in the engineering industry, there is a strong chance that you could benefit from an R&D Tax Credit study. Let alliantgroup’s engineering experts help you claim the credits that you deserve!
Engineering Case Studies
Examples of Activities and Innovations Eligible for R&D Tax Incentives Include the Following:
- Determining alternate materials with which to construct a structure or parts of a structure (must be a new concept to the taxpayer)
- Determining alternate means of assembling and/or fastening component parts of a structure (must be a new concept to the taxpayer)
- Improving acoustical qualities of structure
- Developing alternative water flow / plumbing systems
- Developing alternative electricity conduction systems
- Developing or improving lighting within a structure
- Improving or developing alternative ventilation for a structure
- Improving or determining alternative heating and cooling systems
- Determining alternative structural design
- Developing processes or equipment for the extraction of natural elements from another substance, or the development of processes and equipment to convert the extracted materials
- Developing a pilot plant to investigate the concepts of a model or process
- Ensuring that toxic waste and other waste disposal processes integrated into the structure
- Integrating product and material transportation systems into the functional design of the structure
- Conducting environmental impact studies
- Incurring integration costs related to designing multiple co-dependent features, where the technical uncertainty may only be eliminated by designing the related components
- Implementing counter-terrorism capabilities
- Conducting environmental design
- Conducting sustainable design
- Performing space utilization
- Experimenting with new materials and technologies
- Performing CAD modeling
- Practicing design testing
- Conducing special use design
- Performing harsh environment design & testing
- Conducting BIM modeling
alliantgroup’s Engineering Industry Specialization Team
In order to better serve engineering firms of all kinds, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the engineering industry. alliantgroup’s Engineering Specialization Group employs individuals who have educational backgrounds and practical experience within the disciplines of architecture, civil engineering, mechanical engineering, and electrical engineering. alliantgroup has qualified and quantified credits for firms ranging from small startup firms to large, multi-national architecture and engineering firms.
Free R&D Tax Credit Whitepaper
Download our free R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.
