CONSTRUCTION
RESEARCH AND DEVELOPMENT TAX INCENTIVES FOR THE CONSTRUCTION INDUSTRY
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Many construction companies are unaware that the government offers generous research and development (R&D) incentive programs. Other companies are aware of the R&D Tax Credit, but fail to take full advantage due to misconceptions about the types of research and development activities that qualify. The fact is that a broad range of common construction industry practices will qualify for the credit under the Internal Revenue Code’s definition of R&D. Research and development is not limited to the work of dedicated scientists. Construction industry engineers, technologists, designers, and machinists often spend a substantial portion of their time developing superior designs and manufacturing practices in an effort to remain competitive. This continuous evolution of technologies provides ample opportunities for companies to take advantage of these tax incentive programs.
If your company operates in the construction industry, there is a strong chance that you would benefit from an R&D Tax Credit study. Let incentAdvise's construction experts help you claim the credits that you deserve.
Claim up to $900,000* in Construction Research & Development Tax Incentives
incentAdvise is the leading tax incentive firm serving companies in the construction industry. With a 99% success rate and 20 years of experience, incentAdvise has helped hundreds of companies like yours claim up to $900,000* in
tax credits.
What Qualifies for the R&D Tax Credit in the Construction Industry?
Types of Research Activities
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Exploring means and methods and construction techniques
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Preparing structure and facility design for constructability
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Developing and improving construction equipment development
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Designing LEED/green initiatives
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Designing HVAC systems
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Designing electrical system design
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Utilizing Building Information Modeling (BIM) for sub-system coordination
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Analyzing the functions of a design directed at improving performance, reliability, quality, safety and/or life cycle costs
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Performing Request for Information Process (RFI’s)
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Improving mechanical equipment sizing
Qualified Research Expenditures
Wages.
W-2 wages paid to an employee for "qualified services" performed by the employee. Only wages subject to withholding.
Outside Contractors.
Work performed by non-employee / independent contractors. Only 65% of expenses may be eligible.
Supplies.
A taxpayer may claim the research credit for amounts it paid or incurred for supplies used in the conduct of qualified research.
Example Credit Amount
Utilizing the additional funds obtained through their R&D Tax Credit claim, our construction client was able to invest in equipment capable of detecting underground utility lines and other risk mitigation before initiating projects, expanding their company offering.
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GROSS RECEIPTS: $20,594,368
GROSS PAYROLL: $3,398,182
TOTAL R&D CREDIT: $121,103
Examples of activities and innovations eligible for R&D tax incentives include the following:​
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Exploring means and methods and construction techniques
-
Preparing structure and facility design for constructability
-
Developing and improving construction equipment development
-
Designing LEED/green initiatives
-
Designing HVAC systems
-
Designing electrical system design
-
Utilizing Building Information Modeling (BIM) for sub-system coordination
-
Analyzing the functions of a design directed at improving performance, reliability, quality, safety and/or life cycle costs
-
Performing Request for Information Process (RFI’s)
-
Improving mechanical equipment sizing
additional construction industries:
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ELECTRICAL
GENERAL
MECHANICAL
incentAdvise CONSTRUCTION Specialization Team-
In order to better serve construction corporations, incentAdvise has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that comprise construction. incentAdvise's Construction Specialization Group employs individuals who have educational backgrounds and hands-on experience within the disciplines of manufacturing, engineering, electronics, material sciences, lean manufacturing, and chemistry. incentAdvise has qualified and quantified credits for corporations ranging from small private companies to large-scale defense contractors.
Discover if your construction company qualifies for a tax credit based on your research and development efforts.
Did you know you can receive tax incentives for your company’s research and development spending? At incentAdvise, we have over 20 years of experience and a 100% client success rate with helping software based businesses like yours collect all available credits.
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The Research and Development (R&D) Tax Credit provides financial support to businesses developing new products, processes, or technologies. The purpose of the credit is to encourage American company innovation. Industries eligible to receive the R&D incentive include engineering, environmental sciences, software, and manufacturing and design and many more.
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*R&D Credit is based on a company with $30 Million in annual revenue and $9M in qualifying R&D expense.