When talking to new clients, we’re often told that the company knew about the R&D credit, but didn’t think they were eligible because they aren’t performing experiments in laboratories. Thankfully, in the early 2000s, the IRS got rid of the “discovery rule” requirement, meaning that so long as the company is looking to discover something new to the company (and not new to the world), the activities are eligible!
So how does this impact the engineering industry?
Well, if an engineering firm performs any or all of the below activities, it’s likely eligible for an R&D credit:
- Design and evaluate structural and mechanical building systems
- Design and develop MEP and HVAC systems
- Computer Aided Design modeling and simulation
- Develop system automation and custom controls
- Design site specific drainage, roadway, grading, and foundation
- Evaluate site constraints, structural loads, and systems integration to meet engineering requirements
Sectors that typically qualify to the R&D Credit include the following:
- Structural Engineering
- Mechanical Engineering
- Civil Engineering
- Electrical Engineering
- Chemical Engineering
This is just a sample of the engineering activities and sectors that qualify for the R&D credit. If your company, or a company you work with, performs the activities listed above, it likely qualifies for the R&D credit.
Reach out to us today to request an assessment of your eligibility for the R&D credit and we’ll get back to you within a few hours!