Construction Engineering R&D Tax Credits

More than half of all domestic investment goes into building homes, buildings, civil works, and utilities (such as roads, gas and electric systems, sewage and water supply systems, etc.). However, many construction companies are unaware of the significant tax benefits the Construction Engineering research and development tax credit provides for developing or designing novel building processes.

More precisely, if your company invests in developing new or enhanced building methods, you can recover some of these costs. That leaves your funds open for other infrastructure, personnel, or innovation investments. In fact, depending on the state where you conduct business, you might be able to claim refunds of up to 22% of your total QREs.

Qualifying Costs and Activities

Costs for third-party contractors, raw materials and supplies, and employee salaries related to R&D operations are all regarded as qualifying research expenses. You can also use this incentive to cover positions like software developers, site managers, project managers, mechanical engineers, electrical engineers, C-suite, and BIM engineers. Furthermore, qualifying activities for the R&D tax credit in the Construction Engineering industry include:

• Introducing fresh or enhanced procedures in the construction process;

• Developing new hardware or software to help with construction;

• Assessing novel raw materials;

• Putting automation techniques or new robotics into practice;

• Discovering the best way to use resources to increase project efficiency;

• Creating innovative strategies to enhance the health and safety of construction workers.

When You Need Expert Help

Contact our team of tax credit professionals to calculate your construction engineering R&D tax credit for your business without upfront costs.

FAQs

What kind of companies can apply?

Construction engineering companies that conduct qualifying research activities.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, purchase orders, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.