Engineering Tax Credits and Deductions
Opportunities for Tax Savings and Deductions
R&D Tax Credits for Engineering Firms
R&D tax credits for engineering firms are available to a wide variety of industries at both the Federal, and in most cases, the state level. The incentives are designed to encourage U.S.
companies to maintain their competitive advantages through continued innovation and improvements. The credit applies to a number of areas within your business including some salaries, materials, and contract services for qualified activities.
Though R&D tax credit evaluations can be complex, there are some basic guidelines for eligibility.
Engineering Tax Credit Eligibility
- The project must be intended to be useful in the development of a new or improved business component, such as a product, process, technique, formula, invention, or software.
- The project must be undertaken for the purpose of discovering information that is technical in nature. Thus, the activity must rely on the principles of physical sciences, such as engineering, biology, or computer science.
- The project must be intended to eliminate uncertainty related to the development or improvement of a business component. Uncertainty can include the capability, development method, or optimal design of the business component.
- The project must evaluate one or more alternative solutions through the development, refinement, and testing of different options. Further, technical risk must be present, which means that there is a chance the project will not be successful.
Meet Our Engineering Tax Credit Specialist
Tax Credit Director
Alex Bray, JD, LLM, MBA
Aldrich CPAs + Advisors LLP
Alex Bray is a taxation law expert as well as a licensed attorney with a Master of Laws in Taxation and an MBA. Prior to joining Aldrich, Alex was a Tax Senior at a Big Four firm where he specialized in business tax advisory and quantitative services. During his time there, Alex enjoyed connecting with…
- Agribusiness tax credits
- Construction tax credits
- Engineering tax credits
- Manufacturing tax credits
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