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S P O N S O R
Powerful tax credits
Many of the design activities performed by architecture and engineering firms on a day-to- day basis can qualify for R&D and related incentives.
W hat is research and development? There are several different meanings for different purposes. The average individual may think of white lab coats, beakers, and graduated cylinders when they hear R&D. However, the tax code and the law describe a much more expansive definition of research and development. In fact, many of the design activities performed by architecture and engineering firms on a day-to-day basis can qualify as R&D.
Brady Bryan
What does all this mean? It means that AEC firms remain a target rich environment for R&D tax credits. The following case studies help to show how powerful these credits can be. “In a recent ENR article, it’s reported that [Aecom has] successfully claimed millions of dollars in R&D tax credits over the course of several years.”
For example, design, iteration, and evaluation of alternatives while trying to solve technical problems are innate to AEC firms’ activities. They are also the key ingredients to qualifying for R&D tax credits. Take Aecom. In a recent ENR article, it’s reported that they’ve successfully claimed millions of dollars in R&D tax credits over the course of several years. In another example, the aerospace and defense engineering icon, Fairchild, remains a Benchmark research and development tax credit case. Likewise, Geosyntec, a geotechnical engineering firm, was recently successful in claiming R&D tax credits related to their fixed-fee contracts.
See BRADY BRYAN, page 12
THE ZWEIG LETTER July 15, 2019, ISSUE 1304
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