Many design activities performed by architecture firms, especially those during the Schematic Design, Design Development, and Construction Documentation phases may qualify for sizable federal and state R&D tax credits.
While contractual language is a relevant factor, qualifying activities under contracts with clients can also qualify in many cases.
BRAYN’s expertise includes industry-standard tracking and job costing software, which provides for efficient cost analysis and excellent substantiation.
The R&D tax credit is based on “qualified research expenses” (QREs) – for every dollar spent on QREs, you can earn up to 8.0% in federal tax credits! Additionally, over 40 states offer similar R&D tax incentives that can double benefits in some cases.
|ITEM||AVERAGE ANNUAL AMOUNT|
|Gross Revenues||$ 3,600,000|
|Total Payroll||$ 1,900,000|
|Qualified Research Expenses (QREs)||$ 750,000|
|Net Federal Credits||$ 45,500|
|Net State Credits||$ 25,000|
|TOTAL NET FEDERAL AND STATE CREDITS||$ 70,500|
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