Construction Tax Deductions: R&D Tax Credits
Opportunities for Construction Tax Savings and Deductions
Research and development tax credits
R&D tax credits for construction are often the most powerful tax incentive available to contractors. It was introduced in the 1980s by Congress primarily for technological research. The definition of what qualifies as research and development has changed and expanded significantly and now is available to many industries, including construction.
When you think of activities which may qualify as research and development, some think of lab scientists inventing new products. For the construction industry, you are improving processes and creating new products regularly which are considered research and development and could qualify for valuable, government-endorsed tax incentives.
Requirements for 179D Federal Energy Tax Deductions - Energy Efficient Tax Credits
- Must reduce total annual energy and power costs with respect to the interior lighting, systems, heating, cooling, ventilation and hot water systems by 50%, but partial deductions are allowed.
- Energy simulation is required to justify the deduction.
- Inspection and testing must be completed by a qualified engineer or contractor registered in the jurisdiction.
Meet Our Construction Tax Credit Specialist
Tax Credit Director
Alex Bray, JD, LLM, MBA
Aldrich CPAs + Advisors LLP
A licensed attorney with a Master of Laws in Taxation and an MBA, Alex Bray is a taxation law expert. Prior to joining Aldrich as an affiliated independent contractor, 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…
- Agribusiness tax credits
- Construction tax credits
- Engineering tax credits
- Manufacturing tax credits
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