Numerous businesses in the engineering and design services industry often remain unaware of the government tax incentive programs they may be eligible for, or they mistakenly believe that these programs do not apply to their particular industries or client projects. Even those who possess knowledge about these programs often fail to fully claim the tax credits they are entitled to.
For instance, many taxpayers incorrectly assume that only formally licensed and educated engineers engaged in the design of groundbreaking patented products or processes are eligible for the R&D tax credit. While having patents can greatly support qualification for the R&D tax credit, it is not a compulsory prerequisite. Furthermore, other employees and expenses beyond traditional engineering and development roles may also qualify for this credit.
Outlined below are various federal tax incentives that may be relevant to your business, offering benefits that save cash and present refund opportunities. If any of these credits appear applicable to your business, KC&A can assist you in claiming the credits you rightfully deserve!
Engineering firms have the potential to qualify for R&D tax credits by engaging in eligible research activities. Here are some examples of activities that may be eligible for R&D tax credits:
- Performing technical research for project consulting and evaluation
- Optimizing designs for material, energy, and resource usage
- Researching new material testing processes
- Integrating transport systems into design and product development
- Integrating technical processes (software/hardware/machinery)
- Enhancing CAD iterations for consistency, reliability, and functionality
- Improving processes through PLC iterations
- Designing improved HVAC systems
- Designing new drainage systems and flare stations
- Conducting environmental impact studies for sustainability
- Designing spatial requirements for facility improvement
- Designing protocol systems for control and energy consumption
- Conducting performance and quality development testing
- Developing construction techniques for sustainability and pollution control
- Developing unique designs, material selection, techniques, and processes
- Developing efficient extraction and treatment systems
- Developing electrical systems and retrofits
- Developing and improving facilities
- Implementing unique projects for environmental factors
- Evaluating alternative structural designs
- Testing experimental substitute energy conduction systems
- Testing experimental alternative resource flow/filtration systems
Contact KC&A today for your free R&D tax credit assessment and evaluation
