R&D Tax Credits for Construction & MEP Businesses
A Comprehensive Source Advisors Case Study
R&D Tax Credits for Construction and MEP
In the Architecture, Engineering, and Construction (AEC) sector, R&D tax credits aren’t just for traditional engineering and design activities. Construction and MEP firms can also claim these benefits for a variety of innovative endeavors, from custom system design to novel construction methods. This Source Advisors case study explores how one construction firm leveraged these opportunities to achieve significant tax savings and fuel ongoing innovation.
About the Company
This full-service construction firm provides an array of services including Mechanical, Electrical, and Plumbing (MEP) engineering, and operates across the United States. They serve various sectors including Corporate, Cultural, Healthcare, Education, and more.
In a sector rife with complex requirements and considerations ranging from public safety to energy efficiency, the company engages in extensive R&D activities. These include evaluating building plans, developing MEP engineered systems, and implementing advanced construction techniques.
What Qualified as R&D?
Activities qualifying for R&D tax credits were numerous and involved the conceptual design phase, including energy and utility system assessments, architectural schematic reviews, and alternative MEP system discussions. Special focus was on electrical distribution systems, plumbing system design, and HVAC technologies. The company utilized advanced software like BIM and AutoCAD for detailed analyses, and often had to adapt their designs due to public access and safety concerns.
The Source Advisors Solution
After an initial feasibility analysis, Source Advisors engaged in a deep dive into the company’s construction and MEP activities to calculate potential R&D tax credit benefits.
We evaluated every stage of the construction process, from design to implementation, identifying all qualifying R&D activities.
Financial Impact Assessment
Our team reviewed the company’s financial records, identifying the expenditures related to qualified R&D activities. An accurate estimate of the potential tax credits was calculated.
All identified R&D activities were cross-verified against federal and state tax laws to ensure they met the necessary legal criteria for claiming R&D tax credits.
The Results Speak for Themselves
After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:
This financial leverage is essential for the firm to continue its work in developing innovative and safe construction solutions.
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Don’t miss out on the valuable tax credits that could boost your businesses growth.
Contact Source Advisors to discover the untapped R&D tax credits that could significantly benefit your construction or engineering firm.