Building Automation Companies: Harness the Power of Innovation with the R&D Tax Credit

This article focuses on building automation companies, what is building automation, and how companies can benefit from the R&D tax credit by documenting and claiming innovative activities like developing advanced control systems, IoT solutions, predictive maintenance algorithms, and energy management strategies.

By Samantha Wenden

Building automation companies are at the forefront of technological advancement, developing innovative solutions to optimize building operations. Did you know that your innovative work could qualify for significant tax benefits through the Research and Development (R&D) tax credit?

WHAT IS BUILDING AUTOMATION?

Also known as building automation systems (BAS), refers to the use of technology to control and monitor various building systems such as heating, ventilation and air conditioning (HVAC), lighting, security, and access control. Specific examples are listed below:

• HVAC Automation: Controlling heating, ventilation, and air conditioning systems to improve energy consumption.
• Lighting Control: Managing lighting systems to adjust brightness and schedules based on occupancy and daylight levels, reducing energy waste and improving building efficiency.
• Security Systems and Access Control: Integrating security devices like cameras, managing access to buildings and specific areas through card readers, biometric systems, and other technologies to improve building security.

WHAT QUALIFIES AS R&D FOR BUILDING AUTOMATION COMPANIES?

To be eligible for the R&D tax credit, your activities must involve technological uncertainty. For building automation companies, this often includes, but is not limited to, the following:

• Developing Advanced Control Systems: Creating intelligent systems to optimize energy efficiency and building performance.
• Integrating AI and machine learning: Implementing AI-powered systems to predict and respond to changing conditions, such as weather patterns and occupancy levels
• Designing and Implementing IoT Solutions: Integrating IoT devices to collect and analyze real-time data.
• Integrating lighting control with other building systems: Developing systems that can coordinate lighting with HVAC and security systems to optimize energy use and improve occupant comfort.
• Creating Innovative Energy Management Strategies: Implementing strategies to reduce energy consumption and lower costs.
• Developing advanced biometric authentication systems: Researching and developing new biometric technologies, such as facial recognition and fingerprint scanning, to enhance security
• Designing innovative access control systems: Creating new access control systems that combine traditional methods with emerging technologies, such as mobile credentials and cloud-based access control.

WHY CLAIM THE R&D TAX CREDIT?

Boost Innovation: The R&D tax credit encourages innovation by incentivizing companies to invest in research and development.

Fuel Growth: By reducing tax liabilities, companies can reinvest savings into new projects, hiring, and expanding operations.

Stay Competitive: Continuous innovation is essential to stay ahead in a competitive market. The R&D tax credit helps companies maintain a competitive edge.

HOW TO MAXIMIZE YOUR R&D TAX CREDIT:

• Document Thoroughly: Maintain detailed records of all R&D activities, including project timelines, technical challenges, and solutions.
• Consult with Experts: EPSA USA can help identify eligible activities and optimize your claim.

1. Stay Informed: Keep up-to-date with the latest R&D tax credit regulations and guidelines. Join one of our upcoming webinars to learn more! Our events and webinars – EPSA USA

By following these strategies, building automation companies can maximize their R&D tax credit benefits and fuel future growth.

Engaging with EPSA USA, which has long-standing expertise helping engineering firms with credits and incentives, can ensure proper documentation, optimized savings, and streamline the claiming process alongside your CPA firms.