Industrial Manufacturing Companies

Industrial Manufacturing Companies

Client Profile

This client is a group of three industrial manufacturing companies based in Franklin, Indiana. The primary company specializes in pattern design, machining, and initial ferrous and non-ferrous metal casting processes. The second company supports process development and performs the actual casting operations. The third provides additive manufacturing capabilities utilizing 3D printing technology. Together, these companies operate across multiple facilities.

Process

McGuire Sponsel’s R&D Tax Credit team conducted on-site fieldwork at the client’s headquarters in January 2024. They educated key personnel on the criteria for the R&D tax credit under IRC Section 41 and interviewed them to identify qualifying research projects and activities across the three companies. Our team analyzed internal documents to develop a robust methodology for calculating qualified research expenditures to maximize federal and Indiana credit claims while compiling the required contemporaneous documentation.

With three distinct but interrelated operating companies, developing an efficient information-gathering process was critical. Our solution involved strategically interviewing key managers and engineers to access the necessary project files and substantiation across all entities.

Study Results

For tax year 2023, our R&D Tax Credits team calculated $2,613,230 in qualified research expenditures for the client, entitling the companies to claim a combined $343,130 in effective federal and Indiana state R&D tax credits.