Utilizing Tax Credits

a/e ProNet Associate Members

Utilizing Tax Credits

Per Stacy deru and Steve Adams at Engineered Tax Services:

Most businesses hire a CPA to compile and file their tax returns based on quarterly and yearly deadlines.  These often involve writing a hefty check to the IRS.  While we at Engineered Tax Services believe everyone should pay their fair share, we also live by ~ “there is no need to leave a tip”.


There are many incentives and credits businesses are not taking advantage of.  Less than one-third of businesses who are eligible know they are.  This is where a good tax strategist can identify incentives and partner with your CPA to take advantage.  Below, four commonly overlooked tax strategies A/E firms and their clients should be utilizing to maximize profitability.


R&D Tax Credits R&D credits can exceed 10% of eligible costs related to developing new products, processes, or inventions.  Over 40 states in the U.S. also have R&D credits than can be stacked with the federal.  These credits amount to substantial savings year over year and can be utilized by start-ups.  Many A/E firms don’t know they’re eligible for R&D tax credits.  Credits are intended to stimulate innovation, technical design and product develop, keeping the U.S. a leader in innovation.  Many qualifying activities seem like day-to-day operations for an architect or engineer, yet meet the qualifying standards for R&D.


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