Engineers: Do Your Activities Qualify for Valuable Tax Credits?

Engineers: Do Your Activities Qualify for Valuable Tax Credits?

Posted by Jeffrey Feingold on 10.24.24

Innovators. Problem solvers. Creative thinkers. Engineers are often described by these attributes, and many of the activities they perform on a daily basis may qualify for valuable research and development (R&D) tax credits. The federal R&D tax credit, designed to stimulate innovation, growth and competitiveness, can offset the significant cost of development. What’s more, most states offer R&D credits that can significantly reduce an engineering firm’s state income tax burden.

While more than 14,000 U.S. companies claim federal R&D credits annually, less than 33% of companies that qualify for the credits actually apply for them.

Engineering and R&D

Whether they are creating mechanical, structural or electrical systems, engineers may not be aware that many of their day-to-day activities meet the qualifications for R&D tax credits. And now that the federal R&D tax credit has been made permanent, engineering firms – including small and midsize firms – can plan ahead with even more inventive ways to strategically plan, qualify and report their R&D expenses to qualify for the credit.

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

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

Engineering Expertise at Tax Point Advisors

Tax Point Advisors, a team of engineers, CPAs and tax attorneys, focuses on helping CPAs and their clients successfully apply for federal and state tax credits, as well as other specialty tax services. With a growing number of offices across the country, we offer CPAs and their clients national expertise with a local touch. Our professionals conduct a thorough on-site R&D review process for every tax credit study. Tax Point Advisors' audit rate is under 5%, and our industry-leading audit success is unmatched. 

Find Out if Your Activities Qualify

The R&D tax credit can be a lucrative incentive for innovative businesses. Given the new permanent nature of the tax credit, now is the time to consider whether activities performed by your company qualify for major cash-saving tax credit opportunities. Any engineering activity must meet the four-part test to qualify for R&D tax credits.

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

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with businesses that may qualify for R&D tax benefits. For more information, visit our website, call us at 800-260-4138 or please leave us a message below.


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