If your business is engaged in environmental remediation activity, there are potential ways for you to benefit from the R&D Tax Credit process and maintain more capital for your company and decreasing taxable expenses on your projects.

In 2015, the Supreme Court of the United States found R&D Tax Credits in the following activities would be considered qualified research expenditures when applied to this type of work:

(1) Site studies;

(2) Design work, including site design;

(3) General services, including permit applications and construction drawings;

(4) Preparation of an O&M (operation and maintenance) manual;

(5) Construction-related services, including on-site supervision and quality assurance monitoring;

(6) Post-construction services, including as-built drawings and a project completion report, and

(7) Additional analyses, modeling, and testing.

(Geosyntec Consultants Inc. v. United States. (2015) 776 F.3d.1330)

As long as the activity was centered on a remediation project where the contamination was estimated and not fully known, the Court held that any activities supporting the project could be considered a qualifying research expenditure as it met the Four Part Test.

Ensuring that a report that fully encompasses the document proving the qualifying research expenditure is critical.  The Paxterra Team works with a variety of clients in the efforts to obtain the R&D Tax Credit and help preserve more money in their business.  If you would like to learn more, please book an appointment with a Paxterra Associate, and we’ll be happy to work with you!