McGuire Sponsel worked with a precision motion systems manufacturer to perform an R&D Tax Credit study to maximize benefit.
McGuire Sponsel worked with a financial software company to perform an R&D Tax Credit study to maximize benefit.
McGuire Sponsel worked with a financial software company to perform an R&D Tax Credit study to maximize benefit.
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After months of delays in the U.S. Senate, Senate Majority Leader Chuck Schumer (D-NY) plans to take H.R. 7024 to the Senate floor for a vote before the August recess.
McGuire Sponsel worked with three industrial manufacturing companies to perform an R&D Tax Credit study collectively to maximize benefit for the parent company.
In this episode, host TJ Sponsel and guest Audrey Asfoor discuss discuss the intricacies of R&D tax credit documentation.
McGuire Sponsel worked with a technology development company to perform an R&D Tax Credit study to maximize benefit.
In the United States, there are numerous innovation-driven tax incentives. The Research and Development (R&D) Tax Credit is a crucial tool for businesses seeking to offset the costs associated with developing new products or processes. Regardless of the industry, artificial intelligence (AI) is a concept that every business is looking to leverage.
Since January 10, 2022, taxpayers filing amended tax returns with claims for refund related to the R&D Tax Credit have been required to include supplemental information with the return.
Client Snapshot
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Precision Motion Systems ManufacturerMinnesota
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Company Profile
Designer and Manufacturer of High-precision Motion Systems
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Project Type
Current Year Study
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Project Objective
Tax Credit Realization
Precision Motion Systems Manufacturer
Client Profile
The client is a designer and manufacturer of high-precision motion systems with two decades of experience in the industry, located in the Minneapolis area. Since 2019, the company has seen significant growth, increasing its number of qualified employees by 76%.
Process
Our R&D Tax Credits team was engaged to help the client determine which projects qualified for the R&D Tax Credit and identify eligible expenses. Our team conducted remote fieldwork with the company’s employees through email correspondences and conference calls. We interviewed key personnel to determine which activities and projects qualified as research in accordance with IRC §41 Credit for Increasing Research Activities.
A primary challenge in this engagement was quantifying the supply costs based on different design iterations and the client’s accounting format for tracking these costs. Our team worked closely with the client to develop a methodology for accurately capturing these expenses within the framework of the R&D Tax Credit requirements.
Study Results
For the 2023 tax year, we calculated $3,096,554 in federal qualified research expenditures (QREs) related to the company’s design and manufacturing activities. This resulted in a total R&D Tax Credit of $195,199 for the client for the 2023 tax year.
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$3,096,554
Total 2023 Federal QREs
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$195,199
2023 Federal R&D Credit