Architecture & Engineering - Specialty Tax Advisors

The Agriculture sector involves high capital and operating costs, environmental and conservation goals, innovation, and sustainability practices, all areas that are candidates for tax incentives.

Ideal Candidates:

Architecture firms engaged in public or energy-efficient building design
Structural, mechanical, electrical, or civil engineering firms
Firms investing in technology, design innovation, or building performance

Here’s an overview of how Architecture companies can benefit.

179D Tax Deduction

A&E firms that design energy-efficient systems for government-owned or tax-exempt buildings (e.g., schools, courthouses, universities) can claim a federal tax deduction under §179D:

Up to $5.00 per square foot for qualifying HVAC, lighting, and envelope systems
Can be allocated to the designer even if the firm does not own the building

Benefit: Direct tax savings to incentivize energy-efficient design work.

Research & Development (R&D) Tax Credit

Many A&E activities qualify as R&D:

Innovative design work
Structural modeling or seismic resistance analysis
LEED certification processes
BIM modeling and integration of new materials or engineering processes

Benefit: Up to 10% of qualifying labor and overhead costs recovered as a tax credit.

Cost Segregation

Firms that own or improve commercial real estate can use cost segregation to:

Accelerate depreciation of elements like lighting, finishes, security, and networking
Maximize year-one deductions

Benefit: Enhanced cash flow and reduced taxable income.

What Services are Included?

Section 263A (Uniform Capitalization Rules) & Fixed Asset Reviews

For firms capitalizing large equipment or leasehold improvements:

Review of capitalized costs to identify items that should be expensed
Opportunity to “catch up” on missed depreciation through §481(a) adjustment

Benefit: Retroactive deductions and improved compliance.

State & Local Incentives

Architecture and engineering projects in specific regions (especially those involving sustainability or innovation) may qualify for:

State-level R&D credits
Green building grants
Workforce or hiring credits

Benefit: Layered savings beyond federal incentives.

IC-DISC (Interest Charge – Domestic International Sales Corporation)

Export Tax Incentive for US firms that perform services in the US that relate to a building, structure or project located outside of the country:

IC-DISC allows export profits to be taxed as qualified dividends

Benefit: 10–15% reduction in federal tax on export-related income.

Form 3115

A Form 3115 - Application for Change in Accounting Method, allows businesses to request approval from the IRS to change their accounting method. This form might be required when making changes to claim various tax credits.

Changing Depreciation Method
Inventory Method
Accounting for Repairs vs. Capital Improvements

Benefit: Tax relief through audit protection, improved financial reporting accuracy, potential tax benefits, and compliance with IRS Regulations.

Payroll Tax Reduction Strategy

Companies with W2 employees will qualify for this tax credit program.

Proven ROI with significant Payroll Tax savings recognized on first payroll cycle
Eligible employees see an increase in net take-home pay
Zero upfront or out-of-pocket cost to employer or employee
Attract and retain top talent
Audit compliance

Benefits: Employer FICA Tax Savings is $56.80 per month or $681.60 per year per eligible employee. Employee FICA/State/Federal Tax Savings includes an approximate 3-4% increase in monthly net take-home pay.