Approved by the Infrastructure and Research Policy Committee on February 6, 2026
Approved by the Public Policy and Practice Committee on March 20, 2026
Adopted by the Board of Direction on July 21, 2026

Policy

The American Society of Civil Engineers (ASCE) supports a permanent research and development (R&D) investment tax credit for corporations. The tax credit should be applied to total R&D spending. To be most effective, tax policy should:

  • Motivate industry to adopt a longer-term view of return on investment in engineering R&D and encourage the reinvestment of profits.
  • Encourage investment in new and upgraded research facilities through more favorable depreciation rules and equipment credits.
  • Promote innovation and responsible risk-taking by encouraging the development, adoption, and commercialization of emerging technologies and innovation strategies, including design standards that reduce risks from human-induced and natural hazards.
  • Broaden equitable participation by applying the tax credit equally to all corporations and encouraging collaborative research partnerships among government, universities, industry, and nonprofit organizations.

Issue 

The US position in global markets is increasingly threatened by an insufficient and uncertain commitment to engineering research and development (R&D), especially as global competitors make sustained, long-term investments in innovation. Although global technologies and intellectual property may have transferable applications in the US, the loss of domestic R&D capacity has business and security implications with potentially far-reaching consequences. Tax policy strongly influences business investment decisions, and predictable, stable R&D tax policy is essential to maintaining robust private-sector investment in engineering R&D.

Long-term policy certainty is especially important for engineering R&D, which often requires multi-year planning, substantial upfront investment, and sustained funding to move ideas from research through development and deployment. A permanent, meaningful R&D tax credit gives businesses the confidence to plan, budget, and invest in long-term R&D. Without that certainty, companies are less likely to commit resources to engineering R&D, weakening US innovation capacity and competitiveness.

Rationale

The competitive position of the US is compromised because of our inadequate R&D investment which is partially due to limited tax credits for R&D. Additionally, foreign companies compete fiercely for engineering projects with the assistance of their governments that offer other financial incentives. 

A permanent, meaningful US R&D tax credit is essential to ensure that US corporations keep investing in research and development and fully utilize the results during product development. These credits are vital not only to the US maintaining and improving its position as a global leader, but also to provide greater benefits to society at large, corporations, public sector entities, and not-for-profit organizations. R&D investments are legitimate corporate expenses which should be encouraged by the federal government. 

ASCE Policy Statement 455
First Approved in 1997