What you need to know
A&E activities is about solving a technical problem related to customer orders, or changes in product application. Architecture & Engineering firms routinely conduct qualifying research under contract with their clients.
Neither the contract, nor payments received for services under the contract, will necessarily disqualify the activity from qualifying for the federal R&D tax credit. If there is the existence of some degree of economic risk, and the right to apply the knowledge obtained through these activities, the R&D process is retained.
If you want to know more about the R&D qualifying activities for Architects and Engineering Firms, feel free to download the white paper.