A Nashville technology company engaged McGuire Sponsel to conduct a four-year R&E tax credit study. The company codes, designs, and implements technology for immersive video displays and integrated audio solutions. McGuire Sponsel conducted on-site fieldwork at the client’s facility, prepared credit calculations and draft tax forms, and delivered a written technical report. During fieldwork at the client’s facility, McGuire Sponsel professionals introduced the client to the R&E credit criteria and worked with the client to gain an understanding of the company’s structure, development process, and projects. Through on-site interviews with programmers, designers, and technical management, McGuire Sponsel professionals were able to gain an in depth understanding of the client’s company structure and research activities, which resulted in identifying more qualified research expenses than were expected and efficiencies built for future R&E studies.
The final effective credit calculated over the four-year period was $234k, which exceeded total projections by $80k and will be used to offset the company’s income tax liability.