by Kyle RiddleDecember 6, 2019

Client Profile
McGuire Sponsel assisted a medical devices company in Northern Indiana with a three-year R&E tax credit study. The company designs, develops, and manufactures new and improved orthopedic medical devices. McGuire Sponsel worked with the employees to determine the qualified research expenses, focusing on both product and process development efforts. To get an in depth understanding of the company’s R&E efforts, the McGuire Sponsel team spent a day on-site at the client explaining the credit criteria, conducting a facility tour, and interviewing involved technical employees about the company’s research activities and projects. At the conclusion of the project, McGuire Sponsel provided the detailed credit calculations, draft tax forms, and a written technical report.

Study Results

McGuire Sponsel identified nearly a million dollars in qualified research expenses for 2018, and ultimately calculated a total credit amount of $330k over the three year period between federal and Indiana credits, exceeding expected projections by nearly $100k. The company was able to use the credits to offset its federal and state income tax liability, which will help enable it to reach its future expansion goals.