FEDERAL TAX INCENTIVES
Federal Research & Development Credit
The federal Research and Development (R&D) Tax Credit incentivizes companies to invest in research and development activities. It allows eligible businesses to claim a credit against their federal income tax liability for qualified R&D expenses incurred in the development or improvement of products, processes, or software.
Eligible activities include those performed for use in developing new or improved products, processes, or software
Calculated as a percentage of eligible R&D expenses
Unused credit can be carried forward
179D Energy Efficiency Deduction
The 179D Energy Efficient Commercial Buildings Deduction is an incentive aimed at incentivizing building owners, architects, engineers, and contractors to design and construct energy efficient commercial buildings.
Credit amount of up to $1.80 per square feet
Applies to new construction or renovation that meet certain efficiency standards.
Eligible buildings include commercial buildings, certain multi-famly residential buildings, and government-owned buildings.
Energy efficiency standards are set by the Department of Energy and relate to the building envelope, lighting systems, and HVAC systems.