R&D Tax Credits for Engineering Firms

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

Engineers must continuously innovate to remain competitive in today’s global environment. As engineering firms develop new products and design new concepts, there’s a good chance that their activities may qualify for federal R&D tax credits to offset the significant cost of development.  Further, most states offer state R&D tax credits that can significantly reduce an engineer firm's state income tax burden.

The federal R&D tax credit was designed to stimulate innovation, growth and competitiveness. Now that the tax credit has been made permanent, engineering firms have even more incentive to strategically plan, qualify and report their R&D expenses to qualify for the credit. That includes many small and midsize engineering service firms.

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

Typical Qualifying R&D Credit Activities for Engineers

  • Building information modeling
  • Determining alternative structural design
  • Improving or determining alternative heating and cooling systems
  • Improving or developing alternative ventilation for a structure
  • Developing or improving lighting within a structure
  • Developing alternative electricity conduction systems
  • Developing alternative water flow / plumbing systems
  • Toxic waste and other waste disposal processes integrated into the structure
  • Integrating transportation systems into the functional design of the structure
  • Sustainable design
  • CAD Modeling
  • New technology
  • Space utilization
  • Design testing
  • New materials
  • Environmental design
  • Environmental impact studies

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

To learn more R&D tax credit services for engineers, 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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