Is Your Construction Company Eligible for R&D Tax Credits?

The Credit for Increasing Research Activities (IRC Section 41), or the R&D Tax Credit, as it is more commonly known, has been around since 1981. And while the methodologies for calculating and documenting the credit have evolved through the years, the R&D Tax Credit remains a great benefit to the taxpayers that can take advantage of this incentive. With the PATH Act of 2015 making the R&D Tax Credit permanent and enabling eligible start-up companies to offset payroll taxes, some taxpayers do not even have to be in a taxable position to benefit from the credit immediately!

While the federal R&D Tax Credit is industry-agnostic, there are certain industries in which the activities undertaken lend themselves to taking advantage of the credit. One such industry is construction.

If your company is in the construction industry, consider whether it performs the following types of activities:

  • Design/build construction
  • Geological studies
  • Evaluation and testing of construction materials
  • Construction equipment development/improvement
  • Use of LEED building initiatives
  • Building information modeling (BIM)

If these examples sound applicable to your company, then your company may be eligible for federal and even state R&D Tax Credits. To learn more about the potential benefits for your company, do not hesitate to contact a member of the Schneider Downs R&D Tax Credits Team or the Construction Industry Group.

You’ve heard our thoughts… We’d like to hear yours

The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2020 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

our thoughts on

Coronavirus, Tax BY Jacob Clark
Ohio Unemployment Benefits for Self-Employed and 1099-Misc Filers
Individual Tax Planning Under COVID-19
IRS Announces 2019 Marginal Well Credit
Cash Flow and Liquidity Planning Opportunities
Are You Prepared for the Next Stage of Your Business?
Continuing to Decipher Estate and Trust Deduction Changes

Register to receive our weekly newsletter with our most recent columns and insights.

Have a question? Ask us!

We’d love to hear from you. Drop us a note, and we’ll respond to you as quickly as possible.

Ask us

contact us

Map of Pittsburgh Office

One PPG Place, Suite 1700
Pittsburgh, PA 15222
p:412.261.3644     f:412.261.4876

Map of Columbus Office

65 East State Street, Suite 2000
Columbus, OH 43215
p:614.621.4060     f:614.621.4062

Map of Washington Office
Washington, D.C.

1660 International Drive, Suite 600
McLean, VA 22102