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S P O N S O R
The R&D tax credit is the most widely applicable and powerful tax incentive, but it’s not the only one AEC firms should take advantage of. Designing tax savings for AEC firms
A EC industry business owners, and their CPAs and advisors, have become increasingly aware of several specialized tax credits and incentives that are available to them. For example, federal and state R&D tax credits have now been expanded to include many architecture and engineering design activities, in addition to certain activities conducted by contractors, even those activities performed pursuant to a client contract.
Brady Bryan
Building Deduction, which is available for commercial building owners as a part of an overall accelerated depreciation strategy, is also available for AEC businesses that design certain systems “These tax credits and incentives are very powerful, and since many AEC businesses are entitled to claim them by law, all prudent owners and officers should ensure they are fully assessed.”
It is for these reasons, amongst others, that a $5.5 million annual gross revenue architecture firm is able to secure around $120,000 of federal and state R&D tax credits annually for architecture design activities on their education, healthcare, and commercial projects. Likewise, a $127 million annual gross revenue civil engineering firm that conducts design projects for land development, transportation, water/wastewater, and other civil applications is able to capture about $550,000 of annual federal and state R&D tax credits. While the R&D tax credit may be the most widely applicable and powerful tax incentive for an AEC business to capture, it is not the only one. The Section 179D Energy Efficient Commercial
Justin DiLauro
See BRADY BRYAN & JUSTIN DILAURO, page 12
THE ZWEIG LETTER September 23, 2019, ISSUE 1313
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