Attention, Architects—You May Be Overlooking a Lucrative Tax Credit

From designing energy-efficient buildings to solving complex structural challenges, innovation is at the core of an architect’s role. However, many firms miss out on one of the most powerful tax incentives available: the Research & Development (R&D) Tax Credit.

Common architectural activities may satisfy the IRS’s four-part test for qualified research when they involve experimentation that’s technological in nature and aims to improve a product, process, or system.

 Examples include:

• Designing buildings that incorporate energy efficiency measures or adapt to unique site conditions
• Evaluating alternative design concepts through modeling, computational analysis, or trial and error
• Performing engineering calculations or computational simulations
• Determining optimal materials or methods for achieving performance or sustainability goals

If your firm engages in these types of activities, you may be eligible for significant tax savings.

The recently enacted One Big Beautiful Bill Act (OBBBA) has made the R&D Credit more valuable than it has been in years. This legislation restores immediate expensing for domestic R&D costs beginning in tax years after December 31, 2024, and creates a unique opportunity to “catch up” on unamortized costs from prior years.

For architectural firms that may have missed or underclaimed the credit in the past, now is the perfect time to take another look.

With a unique blend of expertise in tax law, engineering, and commercial buildings, the CRG team brings an in-depth understanding of both the technical and financial aspects of the R&D Credit. We will work alongside your CPAs to identify, substantiate, and document qualifying activities while ensuring compliance with IRS requirements and navigating the complexities of the federal tax code—ensuring that you can confidently claim what your firm deserves.

Architecture firms of all sizes—and across project types—can benefit from the R&D Credit. One recent CRG client, an Arizona-based architecture firm with 40+ employees and over $10 million in annual gross revenue, illustrates just how impactful the credit can be.

This firm engages in full-spectrum design work for both private and public sector projects. Through CRG’s detailed evaluation, the firm learned that its conceptual and schematic design activities on multiple projects qualified under the R&D Credit’s requirements. As a result, the firm secured nearly $1 million in combined federal and Arizona R&D Credits.

Ready to discover whether your architectural projects qualify for the R&D Credit? Fill out the form below to schedule a consultation with the experts at CRG!