Architecture / Engineering R&D Tax Credits

The industry of Architecture and Engineering (A&E), as well as the straight engineering field, have long been recognized as R&D tax credit generators. All engineering trades, particularly civil and structural, bridge and highway design and development, as well as building design and development are characterized by technical ambiguity, which is suggestive of research activities. Each design is very complicated and seldom "cookie-cutter" in nature, and this applies to both new construction and existing structures. Design reviews, the creation of new processes, the experimentation with materials, as well as the examination of alternatives, are all examples of activities that fall under the qualified category.

Qualified operations are often carried out by estimators, engineers, project managers, and technicians, among other professionals. Estimators are responsible for preparing bids and proposals. A large number of technical features of a work are recognized at this point. Engineers with extensive training and experience are frequently employed as estimators. Using drawings that estimators carefully study and assess about information collected via research, bids are prepared and submitted. Due to a large number of unknowns, accurate equipment, material, and labor cost estimates are essential. It is up to these experts to generate hypothetical performance standards for the earliest phase of a project. They must have the knowledge and ability set to anticipate these needs while also considering financial restrictions. Surveys are frequently carried out by engineers to identify reference points, grades, and elevations.

Additional operations may include soil testing for structural as well as foundation options, testing of novel construction materials, risk analysis, and the development of new systems using design software. A large portion of the project manager's work is spent in the field, diagnosing problems and arranging solutions using a variety of different methods and approaches, such as land, grade, and soil alterations. Workers in this field are responsible for working in collaboration with a variety of engineers and project managers. Their responsibilities include soil analysis, software design and modeling, and the preparation of construction contract design documentation.

The costs connected with employing outside consultants to execute these activities are frequently included in qualified research expenses (QREs), in addition to the costs associated with internal labor. Often, engineering organizations underestimate the amount of research and development expenditures they incur, as well as the amount of R&D tax credit they are entitled to. The kind of activities that might qualify for the credit are significantly larger in scope and character than what is generally thought of as qualifying research and development, and they are also much more diverse.