R&D Tax Credits - Specialty Design/Build

Steel & Timberframe Design/Build

Client Profile
A steel and timberframe design/build group located in Pennsylvania specializes in designing, manufacturing, and building custom residential and commercial structures and construction projects. The company is a control group formed of several entities, and in 2021, added another entity which shifted employee involvement and allocated tax credits.

Process
The client approached McGuire Sponsel’s R&D Tax Credit team to determine qualified expenses for all entities in the control group. Our team conducted onsite fieldwork in June of 2021 for the 2018-2020 study filing 9/15 and did additional fieldwork for the 2021 study later in the year for 3/15 filing due to the addition of the new entity.

During this time, the company experienced a shift in leadership and our team needed to educate new leadership on the process for claiming the credit. We ensured the team got up to speed quickly on expectations so the process could run smoothly on all sides and we could still meet filing deadlines.

Study Results
For the 2018-2020 study, overall federal QREs totaled over $4.6M resulting in a federal credit of $324,608 and a tentative Pennsylvania credit of $51,411.

For the 2021 study, federal QREs totaled over $2M resulting in a federal credit of $138,479 and tentative Pennsylvania credit of $36,484.