McGuire Sponsel identified a software company in Pittsburgh, Pa., focused on building autonomous cybersecurity software. The company’s clientele includes developers, enterprise IT and end users. The company’s staff of software engineers create tools to find and solve vulnerabilities in their software platforms.
McGuire Sponsel performed a site visit to gather information to quantify and substantiate the R&D credit. A kick-off meeting was held to give a better understanding of the credit criteria and what expenses are allowable. Individual interviews were conducted to understand the company, individual employee roles, the development cycle, and qualified projects. Data was collected after the visit to calculate the credit and create a report that described the client’s business, how the client qualifies for the credit, which employees were involved and key qualified projects.
For the 2014 through 2017 tax years, McGuire Sponsel identified $3,922,353 of Qualified Research Expenses (QREs) for the company, resulting in $254,954 in federal tax credits. The company was incorporated in 2012 and the start-up method was used to maximize the dollar-for-dollar tax benefit for the company.