R&D Tax Credits - Defense/Aerospace Manufacturer

Defense/Aerospace Manufacturer

Client Profile
A company in Missouri manufactures aerospace and maritime components for the military. They have also expanded to a chemical processing plant to add further value for their clients. McGuire Sponsel was engaged to perform an R&D Tax Credit study for tax years 2018-2021 to maximize the credit amount for the company.

Process
Our R&D Tax Credit Services team utilized the company’s time tracking system to determine accurate percentages of qualified time, as well as including all applicable personnel. We performed detailed onsite fieldwork where we met with the client in their facility, interviewing various departments to get a better understanding of the company and their research and development process. Our process took about 3 months from start of engagement to sending a final report.

During the process, our team found that the formatting of the company’s time tracking made it difficult to analyze, but we were able to adjust and effectively determine an accurate percentage for qualified individuals.

Study Results
In 2018-2021, federal QREs totaled $7.7M resulting in a total effective credit amount of $498,647.