R&D Tax Credits for Contractors in the Construction Industry

Tax Point Advisors’ National Experts bring a Local Touch to clients in the construction industry, uncovering optimal tax incentives. 

Does your contracting company resolve technological challenges through the innovative use of products and processes?

As architects and engineers have raised the bar on innovation, the construction industry too has developed new processes and engineering solutions—solutions that could qualify for the research and development (R&D) tax credit. R&D credits represent a money-saving opportunity overlooked by countless contractors simply because they don’t understand the tax credit is available to them. What’s more, most states offer state R&D tax credits that can significantly reduce a contractor's state income tax burden.

Contrary to a common misperception, R&D tax credits are not limited to scientists and medical researchers. In fact, many of the activities conducted by contractors and subcontractors – particularly those working in the construction industry – do indeed qualify, and the benefit can mean tens of thousands of dollars in tax savings. 

Click here to see if your construction activities qualify for R&D tax credits.

Typical Qualifying R&D Credit Activities for Contractors

  • Value engineering
  • Improving the overall construction process to increase efficiencies
  • Design/build projects
  • Pre-construction planning
  • Development of means and methods for hard-bid jobs
  • Green building design/LEED certification
  • Energy-efficient design or improvement
  • Experimenting with new material combinations and evaluation of their performance properties
  • Development of innovative assembly of construction methods that accelerate or improve the construction process
  • Dew point analysis to determine location and type of vapor barrier for walls, roofs and floors
  • Designing HVAC systems for airflow and energy efficiency
  • Designing electrical systems for efficient power usage
  • Plumbing system design for efficient water usage
  • Lighting system design for energy efficiency
  • Drainage/storm management water management design
  • Using building information modeling (BIM)
  • High-tech equipment installation
  • Plant production system design

Any contracting or subcontracting engineering activity must meet the four-part test to qualify for R&D tax credits.

To learn more Tax Point Advisors’ R&D tax credit services for contractors in the construction industry, 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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