This success story reviews an architecture/engineering service company located in Nashville, Tennessee that reached out to our team for an R&D Tax Credit Study. The company had annual revenue of $148 million in 2017 and has grown significantly. They employ 1,150 employees of which 650 are included as qualified.

Approach

Our team of R&D consultants conducted group meetings with leaders from each market segment, key members of the Innovation Board, and financial team in order to educate and advise on the qualifications of the R&D Credit and how to apply it to their business. In these meetings, we discuss project qualifications and determine which projects qualify across markets. This information is used to analyze their internal time-keeping data and quantify a qualified research percentage for each applicable employee.

Results

  • $13 million in qualified research expenses (QREs)
  • $1.1 million in gross federal credits
  • $40 thousand in gross credits from 4 states in 2021

View the entire case study here.

Indications of an R&D Tax Credit Opportunity

  • Do you employee engineers, scientists, project supervisors, or programmers?
  • Do you develop or improve products or processes?
  • Do you incur raw material costs during the product development process?
  • Do you build prototypes, jigs, models or dyes?

Conclusion

Since 2014, McGuire Sponsel and LBMC have partnered to provide first-class service with integrity that brings value to LBMC’s clients. As a national specialty tax consulting firm, McGuire Sponsel offers Research & Development Tax Credits, Fixed Asset Services including Cost Segregation, Global Business Services and Credit and Incentive Services. Contact Mike Dalman for more information and to get started.