R&D Tax Credits in the Architecture, Engineering And Construction Industry
06 May 2021
The Architecture, Engineering And Construction (AEC) Industry may not be renowned for carrying out Research and Development (R&D), however according to the R&D Tax credit guidelines, there are certain activities and projects that may qualify as R&D, hence your company may be due credit or a cash refund .
R&D tax credits are an effective way for companies in the AEC industry to generate additional cash flow while innovating and increasing their abilities to meet ever changing technical requirements.
Innovative Solutions
The industry is constantly developing innovative solutions while attempting to solve complex architectural design and structural engineering challenges all whilst meeting the requirements of sustainability and green building standards.
Most activities performed by project Architects, Engineers, and other Design Consultants are R&D rigorous under the current R&D Tax guidelines. Developing new or improved designs, assessing designs through various forms of modelling (BIM/Autodesk) and computational analysis, structural engineering, and design of MEP systems are all activities that generally qualify for the R&D Tax Credit.
Other activities that are typically qualifying include the consideration of different sustainable building materials, the selection of equipment, and the improvement of construction processes for increased efficiency and reliability.
Energy Efficient Improvement and Design
The sustainability of buildings has become a headline topic in recent years. The quality of the built environment is a key factor for a truly sustainable society and central to combating climate change, ensuring sustainable cities and communities.
Achieving significant energy and emissions reduction in the buildings sector is a challenging and a technological process that may involve substitutes, technical uncertainty and in most cases a process of experimentation.
Skilled professionals create comfortable and energy efficient buildings by designing, installing, and commissioning new facilities and investigating, analysing, troubleshooting, and commissioning existing systems.
Qualifying Activities
The following activities in achieving LEED, Green, Nearly Zero Energy Building (nZEB) and BREEAM accreditation are examples of qualifying R&D in architecture:
- Conducting research aimed at reducing a building’s energy consumption
- Outset designing to achieve LEED points
- Using advanced modelling techniques in building physics
- Designing, constructing, and testing prototypes
- Evaluating and experimenting with new building material, fixtures & equipment
In Conclusion, AEC industry companies are eligible to claim R&D tax credits for the activities that meet the requirement as set out in Revenue Guidelines.
To discuss your companies’ projects and assess your eligibility please contact us for a free 1-to-1 consultation now!
