Technology Development Company

Technology Development Company

Client Profile
Since starting in 1987 as a scientific research firm for government initiatives, this College Station, TX, company has grown into a dynamic leader in novel product development for the military/defense and biomedical industries. With expertise spanning eight core disciplines—electrochemistry, energy, experimental therapeutics, life sciences, chemical/environmental sciences, industrial sciences, intelligent systems, and engineering—the company is adept at turning cutting-edge concepts into real-world prototypes and products.

Process
After working with this company for four consecutive years, they contacted our R&D Tax Credits team to determine qualified research expenditures to claim the R&D tax credit for the 2023 tax year. As a large enterprise with substantial supply costs, contractor expenses, and research consortia fees, we leveraged data cleaning tools to systematically identify, categorize, and calculate qualified costs. Our approach maximized the credit amount while carefully adhering to IRS guidelines and Section 41 requirements.

With a highly complex operation, effectively organizing the study was critical. A major hurdle involved evaluating the company’s numerous third-party contractor relationships and contracts to properly include qualifying expenses per Section 41 rules. The entire study took approximately two months from the initial engagement to delivering the final calculations.

Study Results
For the tax year 2023, McGuire Sponsel calculated $3,213,357 in qualified research expenditures for the company’s cutting-edge defense, aerospace, and biomedical projects. This entitled them to a Federal R&D Credit of $243,198, an Effective Federal R&D Credit of $192,126, a Texas Franchise R&D Credit of $95,409, and a total R&D Credit of $287,535.