Article
Tax planning strategies and top considerations for architects and engineers
Sept. 9, 2024 · Updated March 21, 2025 · Authored by Roy Deaver, Kyle Sund, Dustin Hubbard, Matt Lord, Josh Jirava, Matt Graham, Chris Schultz
With constantly evolving tax regulations, architectural and engineering organizations — particularly those operating in numerous jurisdictions — face significant complexities that can drain focus from core business objectives.
Fortunately, taking a proactive approach to tax planning can help address challenges before they become obstacles. Simultaneously, architectural and engineering organizations may also be eligible for tax credits and incentives that can help boost cash flow and alleviate operational expenses.
Explore solutions for top concerns that can interfere with an architectural and engineering firm’s tax planning strategy, as well as opportunities to pursue tax credits to help your better prepare for next tax season.
Top tax planning considerations
Architectural and engineering organizations may encounter several tax considerations that can impact their financial strategies. Key areas to explore include:
IRC section 179D tax deduction
The Section 179D tax deduction, also known as the Energy Efficient Commercial Buildings Deduction, provides architects and engineers with an incentive to incorporate energy-efficient features in their commercial building designs.
For tax years 2022 and prior, the Section 179D tax deduction allows firms designing government buildings to claim a tax deduction of up to $1.80 per square foot — inflation adjusted to $1.88 per square foot for 2022 — for work performed on interior lighting, building envelope, and HVAC and hot water systems. For tax year 2025 inflation adjustments, refer to the chat in our
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.