While it may be uncommon to associate the research and development (R&D) credit with our industry, a large number of construction companies perform R&D – which would qualify them in the eyes of the IRS. 

The problem is that many companies don’t realize they may qualify due in large part to common misconception. This article will shed light on R&D specifically in the context of the construction world to help businesses determine if they may qualify to claim the highly beneficial credit.

What is the R&D Credit?
The R&D credit is a federal credit available in many states which allows applicable businesses to claim a credit for a percentage of their qualified domestic spending on R&D.

The credit was originally enacted in 1981 but occupied a temporary status for 40 years before it was inevitably renewed tens of times as its expiration would arrive. In December 2015, Congress eventually passed legislation that both expanded the R&D credit and made it permanent.