PSS TAX · SERVICE 02
AN R&D TAX CREDIT SPOTTER GUIDE
The Simple Test
Construction itself isn’t automatically R&D, but technical problem-solving within a construction project can be.
Look for projects where established construction methods, materials or systems could not readily achieve what was required and the contractor had to develop or appreciably improve a technological solution — particularly where experienced professionals couldn’t simply determine the answer from existing knowledge, standards or normal industry practice.
Construction
Don’t rule it out just because…
It was a client-led contract
An architect or engineer produced the original design
The overall project was “just construction”
Only one part of the contract presented the technological challenge
The solution used existing materials or components
The difficult work happened on site rather than in a laboratory
The question isn’t “Was the construction project innovative?” It’s “Were genuine technological uncertainties encountered and resolved within it?”
R&D vs probably not R&D
Potentially R&D
Developing and testing a non-standard installation methodology because physical constraints, loading requirements and interaction with existing structures meant established methods couldn’t reliably achieve the required result.
Probably not R&D by itself
Constructing a building to an established design using standard materials and established installation techniques.