R&D Tax Credit Study
R&D Tax Credit Study Results in $65,000 in Effective Tax Credits
McGuire Sponsel conducts R&D Tax Credit studies that conservatively maximize benefit. A tool and die manufacturer that develops made-to-order parts and tools engaged McGuire Sponsel to perform an R&D Tax Credit study. With an annual revenue of $3.4 million, the business participates in engineering, managing and supporting the development of custom manufactured tools. The professionals at McGuire Sponsel worked closely with the tool and die manufacturer to perform an in-depth study. McGuire Sponsel identified $630,000 of Qualified Research Expenses (QREs), resulting in $65,000 in effective tax credits.
In concluding whether a company’s activities qualify for the R&D Tax Credit, it must pass all four qualifying criteria:
- The goal has to be to discover some technological information that does not already exist within the organization.
- There must be a level of technical uncertainty related to the product or process development.
- Any qualified event must have a process of experimentation to prove or disprove a technical theory.
- The research must have goals attributable to function, efficiency, capacity, or other performance criteria.
Do you Qualify for an R&D Tax Credit Study?
To find out if you or your client may qualify for an R&D Tax Credit study, complete and submit the form below. One of our R&D Tax Credit professionals will contact you to complete a free evaluation.