Tackling the profit challenge through tax credits

AIA Tackling the Profit Challenge Through Tax Credits

Former architecture CFO Robert Pratzel and AIA partner alliantgroup examine how architecture firms can recoup thousands of dollars by leveraging the R&D tax credit.

Architecture firms often have difficulty achieving consistent and satisfactory levels of profits. This is due to a variety of factors, but perhaps most significant are fees being subject to wide swings as business cycles shrink and expand, which, in turn, can have a dramatic impact on capital spending for building projects. This issue is exacerbated by the fact that most firms focus on specialties rather than diverse practices, making them more vulnerable to shifts in the economy.

Helping the firms achieve adequate capitalization is a primary responsibility of the CFO, which includes implementing the most effective income tax strategy. One tool that firms take advantage of is the Research and Development Tax Credit, which offers the advantage of materially increasing profits without interfering with the traditional exercise of decreasing costs.

Click here to learn more about how architecture firms can qualify for the R&D tax credit.

About the Author

alliantgroup offers companies expert consulting services regarding research and development, manufacturing, exporting, energy-efficient design, and hiring in certain established enterprise zones.