LEED/Sustainable Architecture R&D Tax Credits

Architecture companies today are investing more time and effort in the design phase in an attempt to make projects more functional and energy efficient. For this reason, LEED has become the industry gold standard for eco-friendly building design. LEED certification can be used in all building projects and their phases, such as new construction, core and shell construction, interior spaces, and neighborhood design.

However, companies involved in creating new LEED-approved designs or inventive energy-efficient solutions are often unaware that such activities qualify for certain tax incentives. For instance, if you own an architecture company and conduct qualifying activities, you can apply for a state or federal LEED/Sustainable Architecture research and development tax credit. This credit usually equals 22% of your total QREs, but the exact sum depends on various factors, like the state you conduct research in.

Qualifying Costs and Activities

Any cost related to said research activities can be eligible for qualifying research expenses. For instance, it can be paying for third-party contractors, raw materials, or supplies. Furthermore, using the LEED/Sustainable Architecture R&D tax credit, you can cover a number of job positions, including mechanical and structural engineers, project managers, managing principals, design directors, LEED-certified architects, CAD engineers, and C-suite. Qualifying activities for this incentive include:

• Utilizing green technologies for a new house design;

• Choosing the best building materials for the job;

• Creating remodeling plans to lower an existing building’s carbon footprint;

• Developing innovative, structure-specific solutions to enhance indoor air quality;

• Creating one-of-a-kind rainwater retention and management solutions;

• Conducting subsurface engineering and geotechnical analyses.

Contact our experts for a free estimate of your R&D tax credit in the LEED/Sustainable Architecture industry. We can help your company get the incentive without any upfront costs.

FAQs

What kind of companies can apply?

Architecture 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.