The federal R&D tax credit is for firms that solve technical problems: design development, modeling and analysis, prototyping, custom engineering and architecture. It reduces what you owe dollar for dollar.
Qualifying: schematic design iterations, BIM modeling, stormwater, seismic and structural analysis, MEP system sizing. Not qualifying: surveying, construction administration, decorative interior selection.
Qualifying: custom tooling, fixture and die development, process improvement, first-article and prototype work. Not qualifying: routine production runs, quality inspection, standard maintenance.
A deduction reduces taxable income. The R&D credit applies dollar for dollar against federal tax owed.
1st Avenue Advisors is a Houston-based tax consultancy serving manufacturers, architects and engineers with clarity, precision and integrity.
Tell us about your projects and we will review your qualifying activities with you.