Skip to Content

CONSTRUCTION

The construction industry is incrementally undergoing a transformation from a historically stable, static craft passed down through apprenticeship, to one that is more increasingly transformed by new technologies or techniques. These disruptive forces, combined with a cascade of effects from related construction fields undergoing similar change, have necessitated a more academic approach to construction overall.

This adjustment creates unique opportunities for the R&D Credit:

  • Environmental Design

    A major new area of development in the industry, in some cases, entire development programs are defined by their impact on the environment.

  • New Technologies

    In some cases, new construction materials, systems, robotic cutting and welding systems, software, and a host of other advances, can completely transform a segment of the industry.

  • Adaptation of New Systems and Tools

    In some cases, new systems and tools require adjustments to field procedures. In such cases, changing or modifying a procedure can likely qualify.

  • Integrating Changing systems

    It is increasingly likely that construction teams have to integrate diverse new systems, including air quality systems, electronic systems, complex prefabricated components, among others. Creating a process to do so can often qualify.

Case Study

Testing

Testing: Testing is a concern regarding the R&D Credit, as there is an exclusion for certain types of testing. Pesticide Co. divided the testing between that required for proving their process, and that required for FDA approval. They consistently qualified many test expenses.

Construction

The construction industry is typically a very practical field, which incorporates change begrudgingly, but when it does, changes visibly and rapidly. Demolition Co. is a good example of this. They break down old concrete and steel structures, typically roads or civic facilities, like docks, for major construction projects. They use traditional equipment most of the time, but in some instances, by combining or altering a machine, they can create efficiencies that could never be normally met. One example of this is a hybrid saw and logger combination that allowed them to cut and remove heavy pylons with ease. These developments earn immediate benefits, plus a tax break.

Credit Estimator

Credit Estimator

Disclaimer

This is an estimation only and should not be used on your taxes.  All conclusions involved in this calculation are based on the accuracy of the information provided by the end user.  This calculation utilizes historic information and statistical analysis to determine an industry average combined with a mathematically derived constant for the calculation of State and Federal Benefits.  InnovaTAX cannot and will not warranty the results of this estimation and any party using the estimated figure in place of a genuine calculation does so at its own harm and with full warning from EEPB InnovaTAX that such action is improper.  Further, the estimator developed by InnovaTAX is the intellectual property of InnovaTAX and cannot be used in any other manner than on this website or by InnovaTAX employees.  Due to the fact that the information contained within the calculator is based on industry averages, the results will vary from situation to situation and might be above or below the stated figure.  Consult your tax advisor or EEPB InnovaTAX for further information.

* Industry Averages are historical IRS averages, representative of actual results compiled by the IRS (based industry NAICS code.)  Estimates of QREs and credits are approximations, and actual results will vary based on actual client costs and qualifications.
Sitemap

2950 North Loop West
Suite 1200
Houston, Texas 77092
Phone: 713-622-0016

2950 North Loop West Suite 1200 • Houston, Texas 77092 • Phone: 713.622.0016

EEPB InnovaTax, LLC is a State of Texas registered tax adviser located in Houston, TX.

EEPB InnovaTax specializes in Research and Development income tax consultation; Tax advisory services; Tax and taxation planning advice, information and consultancy services; and Tax consultation.

EEPB InnovaTax, LLC. - Not A CPA FIRM

Copyright © 2019 EEPB InnovaTax, LLC. All rights reserved.