Exploring Research and Development Tax Credits: Engineering and Construction
The proliferation of turnkey, engineering procure and construct (EPC) and design/build contracts is changing the landscape in engineering and construction. If your firm participates in an EPC or design/build effort, it may be assuming new research and development (R&D) risks. You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include:
- Development of new plant and process assays or expansion and optimization of existing plant operations
- Constructability reviews intended to identify improvements to asset or process design
- New production systems or high-tech processes to produce or treat hydrocarbons, hydrogen, ammonia, ethanol and/or other molecular compounds
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service and Treasury Department who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate the computation and information gathering, and a quality assurance team that reviews deliverables and computations.
For more information, see the attachment below.