
179D After the Sunset: Why Designers Can Continue Claiming the Deduction for Years
Design firms should treat June 30, 2026, as a project-screening and documentation deadline. The construction-start date, placed-in-service year, and…
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Reviewed and updated September 2026
Architecture and engineering firms may improve cash flow and reduce tax liability through the Research and Development (R&D) Tax Credit, 179D Tax Deduction, IC-DISC, Cost Segregation, and other federal, state, and local tax incentives. The opportunities available depend on the firm’s activities, project types, energy-efficient design work, research and development activities, and the specific circumstances of the business.
KBKG is a national tax specialty firm that helps architecture and engineering firms identify, document, and support federal, state, and local tax incentives related to Research and Development (R&D) Tax Credit, Cost Segregation, 179D Tax Deduction, Negotiated Incentives, and IC-DISC.
KBKG’s tax specialists have extensive experience helping architecture and engineering firms evaluate qualifying activities, projects, and expenditures and determine which federal, state, and local tax incentives may apply to their specific circumstances.
Federal deduction worth up to $5.94/per square foot of energy efficient buildings. Available to architects, engineers, design/build contractors and building owners.
Federal credit worth approximately 7% to 10% of qualified research expenditures related to designing, developing and improving processes, formulae, and software. State R&D tax credits may also be available, allowing eligible companies to maximize their tax benefits.
Building acquisitions, new construction, and major improvements should be reviewed for proper classification of the individual components for tax depreciation.
The IC-DISC is a federal tax incentive that provides significant, permanent tax savings for U.S. companies that export.
KBKG helps businesses secure and maximize state and local incentive programs that reduce project costs and improve long-term return on investment.

Design firms should treat June 30, 2026, as a project-screening and documentation deadline. The construction-start date, placed-in-service year, and…

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