Articles

January Technical Speaker 2

Tax Incentives for the Engineering Industry

Mr. Kevin Sullivan, P.E. - Partner, BRAYN Consulting

The Research & Development (R&D) Tax Credit and other related tax breaks save U.S. businesses more than $12 billion annually. Many owners, officers, and CPAs of engineering firms are unaware that they are eligible for valuable federal and state R&D Tax Credits. However, due to the expansive definition of R&D for tax credit purposes, many of the day-to-day design and engineering activities performed by engineering firms qualify for such treatment.

There are four criteria that are considered when qualifying R&D activities. Each activity must meet this “four-part test” to include the associated taxable salaries and wages, supplies, and/or contract research in the calculation of the tax credit. Work performed under contract can qualify, but engineering firms should always be mindful of the exclusion related to funded research.  

This presentation will focus on the federal and Texas state R&D tax credits with specific application to engineering companies, and include case studies and examples.

Kevin is a partner at BRAYN Consulting, where he leverages his experience in the design and construction industry to help businesses take advantage of federal and state tax incentives, credits, and deductions. He is an award-winning expert on sustainable design and construction, and licensed as a Professional Engineer in over 30 states.                                                                                                

Kevin graduated from the University of Houston with a B.S.C.E., where he served as the ASCE student chapter president. He interned and AEI Engineering, worked for Walter P Moore for several years, and has chaired several committees for the ASCE Houston Branch.

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