© 2017 BRAYN Consulting LLC. All Rights Reserved. BRAYN Consulting LLC is a knowledge firm that supports CPA firms and their clients in obtaining R&D, Production & Construction incentives. Headquartered in the greater Los Angeles, California area, BRAYN is comprised of technical experts with decades of Big 4 and national tax consulting firm experience in the area of R&D, production, construction, energy, and growth incentives. THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT.

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  • ​​Design Phases
    • Schematic Design
    • Design Development
    • Construction Documents

199 DPAD

IRC Section 199 Domestic Production Activities Deductions (DPAD) represents a valuable tax incentive for businesses that perform domestic architecture, engineering, and construction services. Eligible engineering and architecture services include consultation, investigation, evaluation, planning, design and supervision of construction. Construction activities must be domestic and can include residential or commercial building improvements as well as infrastructure projects. Generally, the tax deduction can be as much as 9% of taxable income.

Other Incentives

Architecture Firm Case Study

ItemAverage Annual Amount
Gross Revenues$3,600,000
Total Payroll$1,900,000
Qualified Research Expenses (QREs)$750,000
Net Federal Credits$45,500
Net State Credits$25,000
Total Net Federal and State Credits$70,500

R&D for Architecture

Examples of Qualified Activities

  • Building Design
    • Facades
    • Elevations
    • Site orientation
    • Master Plans
    • Sub-system coordination

Ready To Explore Your Incentives?

Many owners, officers, and CPAs of architecture firms are unaware that they are eligible for valuable federal and state Research & Development (R&D) Tax Credits. However, due to the expansive definition of R&D for tax credit purposes, many of the building and building sub-system design and detailing activities performed by architecture firms during the Schematic Design, Design Development, and Construction Documentation phases often qualify for such treatment. 

179D Deduction

The 179D Energy Efficient Commercial Building Deduction provides a tax incentive of up to $1.80 per square foot of commercial buildings. The deduction applies to the design and installation of energy efficient systems, such as HVAC, Lighting, and Envelope systems. The 179D is available to building owners as well as the designers and builders of government owned buildings.