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Energy companies have increasingly been on the leading edge of development. The last few decades have seen major transformations in the way energy is located and produced. From alternative energy sources such as wind, solar, and hydraulic, to conventional sources with advances in fracking, subsurface mapping, directional drilling, and many other developments, few industries have expanded their technical foundation more than energy. Those things that improve competitiveness frequently generate tax benefits, including:

  • Reliable

    Changes to facilities to increase reliability, efficiency, capacity, or to change feedstocks.

  • Plants

    Designing new plants, or changes to existing plants.

  • Plans

    Designing drilling plans for reservoirs to reach previously untapped potential.

  • Optimization

    Optimization of existing plants to deal with changing.

Case Study

Utilization Options

Options: Once efforts are qualified, there are a number of ways to actually use the benefit. For smaller/startup companies, income tax can be taken to zero, or even offset payroll tax past zero. For larger companies, it can reduce income tax, or offset sales tax, depending on location.


The discovery and development of energy resources has probably received more attention this century than probably any other single industry. It is an extremely well structured field, with highly-defined roles. One ‘midstream' company, Compression Co., provides a compression service for refining and distribution operations. Compression Co. designs and fits compressors to an incredibly specific profile needed at natural gas refineries, meaning that many of these compressors are actually ‘pilot plants' which are themselves ‘works in progress.' The uncertainty around these generated considerable credits, and many activities were included in the credit.

Credit Estimator

Credit Estimator
* 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.


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.


The information used for the calculation of this credit is based on the Internal Revenue Code and Regulations.  EEPB InnovaTAX gathered information from State legislatures and taxing authorities for each state and relied upon the information provided by the state to develop this estimator.  The definitions of activities that qualify for tax credit are based on the definitions set out in the Internal Revenue Code and by each state authority.

EEPB InnovaTAX maintains this website on a regular basis and makes its best effort to update the estimator but does not warrant the calculations involved in the estimator to contain current law at all times.


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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.

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