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W orking with walls, light, shadow, and the properties of a nearly endless array of building materials, architects and engineers create the spaces in which we live and work. Some are dazzling, some are utilitarian, but all demand years of training, experience, and professional discipline to create. These five financial considerations are just a few of the measures that successful AEC firms put in place to build long-term organizational health. Financial considerations for AEC firms
Kevin Johns
In running your business, you may find yourself spending as much time working on the business as you spend working in it. Here are five financial considerations that will help you build an enterprise that lasts for you and for your employees: 1. R&D tax credits. Economists like Nobel Prize winner Joseph E. Stiglitz say investment in knowledge, more than just in plans and equipment, is what enables businesses to improve quality of life for everyone. Governments experiment with various incentives to reward companies that set aside resources for research and development and one of them is the tax credit. Established to reward investment in innovation leading to jobs, the Research and
Experimentation Tax Credit (known as the R&D credit) is often misunderstood. A common myth is that only big organizations with big budgets and lab facilities can use it. In fact, many companies, regardless of size, can qualify for an R&D tax credit with the right documentation, and it may apply to past tax years. Credits are in part based on wages paid to employees engaged in research and development work. The list of eligible activities is surprisingly broad and inclusive. In the architecture and engineering arena, these might include innovations in construction products or methods, new software applications, or enhancements to existing processes. The R&D
See KEVIN JOHNS, page 10
THE ZWEIG LETTER DECEMBER 13, 2021, ISSUE 1420
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