Will R&D Tax Credits Benefiting Construction Contractors Become Permanent?

May 29, 2015

Does your construction company benefit from research and development (R&D) tax credits?  If so, the American Research and Competiveness Act of 2015 may be of interest to you.  The bill makes permanent the tax credit for qualified research expenses.  Examples of potential eligible activities include:

  • New construction techniques and processes
  • Structure and facility design
  • Construction equipment development and improvement
  • LEED design and green initiatives
  • HVAC and electrical system design
  • Building Information Modeling (BIM) for sub-system coordination
  • Request for Information Process (RFI)
  • Mechanical equipment sizing

This bill was passed by the House of Representatives on May 20, 2015, and similar legislation is pending in the Senate.  R&D tax credits have expired multiple times over the last several decades, only to be extended by Congress.  The Associated General Contractors of America provided informative feedback on this bill.

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