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Taking flight The R&D; Tax Credit aspects of renovating U.S. airports to global standards By Charles R. Goulding & J. David Roberson A irport design in numerous airports throughout the United States is outdated and lacking in modern technology. Recent remarks by Vice President Joe Biden that described U.S. airports as "third world" have galvanized many airports to pursue massive improvements and "frst-world" modernization projects throughout the country. As a result, airports across the United States are working on major construction and infrastructure projects to improve and up- grade their facilities, including new and upgraded terminals, runways and taxiways, lighting and passenger amenities. U.S. airports provide service to more than 800 million passen- gers annually and is projected to reach the billion mark annually by 2027 or sooner. Compared with their counterparts abroad, U.S. air- ports receive lower marks for customer service, feature more delays and congestion, and have older infrastructure. Nations in Asia and the Middle East are developing new, effcient and technology-enhanced airports that resemble high-end shop- ping malls full of leisure amenities, but American airports are falling behind in core infrastructure areas as well as in amenities. New developments and innovations to improve airport design can utilize research and development tax credits. The R&D; Tax Credit Enacted in 1981, the Federal Research and Development (R&D;) Tax Credit allows a credit of up to 13 percent of eligible spending for new and improved products and processes. Qualifed research must meet the following four criteria: New or improved products, processes, or software Technological in nature Elimination of uncertainty Process of experimentation Eligible costs include employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent. On Dec. 18, 2015, President Obama signed the bill making the R&D; Tax Credit permanent. Beginning in 2016, the R&D; credit can be used to offset Alternative Minimum tax and startup businesses can utilize the credit against payroll taxes. 108 COMMERCIAL CONSTRUCTION & RENOVATION — MARCH : APRIL 2016