Why R&D Tax Credits should be Utilized by Environmental Engineers

Why R&D Tax Credits should be Utilized by Environmental Engineers

Posted by Jeffrey Feingold on 01.30.18

Engineers are the inventors, the thinkers and the problem solvers in most global industries. Environmental Engineers perform many activities on a daily basis and may be unaware they can qualify for valuable research and development (R&D) tax credits. Creating models, new patents, or just improving current systems, are some of the everyday activities Environmental Engineers are performing which meet the eligibility for both federal and state R&D tax credits. The R&D Tax Credit is a general business tax credit under IRS Code section 41 for companies that incur research and development (R&D) costs in the US.

The Research and Development Tax Credit depends on the analysis of eligible expenses including employee wages, cost of supplies, cost of testing, contract research expenses, as well as the costs associated with developing any patents. To determine if your company qualifies for the R&D tax credits your research must meet the following four criteria:

  • New or improved products, processes, or software
  • Technological in nature
  • Elimination of uncertainty
  • Process of experimentation

Here are a few of the qualifying research activities that Environmental Engineers undertake that may translate into R&D tax credits:

  • Conduct site studies
  • CAD modeling
  • Developing new technologies to achieve compliance with changing emissions regulations
  • Developing alternative water flow / plumbing systems
  • Developing alternative electricity conduction systems
  • Sustainable product design
  • Environmental impact studies
  • New materials
  • Improving or determining alternative heating and cooling systems
  • Improving or developing alternative ventilation for a structure
  • Lowering building energy usages
  • Additional analyses, modeling, and testing

With all the research and development being done, companies should be utilizing the R&D tax credits that are available. From new farming methods used to provide enough food for our growing population to managing air pollution throughout major US cities, our environment is being effected daily and we look to engineers for answers and solutions.

Request a free assessment to determine qualifying R&D tax credit eligibility.

To learn more about the benefits of R&D tax credits from Tax Point Advisors, simply fill out the form on this page and a member of our team will be in touch with you. Or, you may call us at 800.260.4138 nationwide.

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