CASE STUDY


CANDY MANUFACTURING

HIGHLIGHTS

  • PACKAGING INDUSTRY
  • $750,000 IN TOTAL
    R&D CREDITS
  • ACTUAL CREDITS 22%
    HIGHER THAN INITIAL
    ESTIMATE
  • $30M GROSS REVENUE

This $30 million specialty-packaging manufacturer helps top food brands bring ideas to the market. They provide full service design, manufacturing, and co-packaging which has
been key to their success.

R&D QUALIFICATION

The company performs hundreds of custom design packaging projects each year for a variety of customers.For this case study, the specific project that qualified for R&D tax credit was the design of a special container to hold gumballs. The product was targeted at children; so in addition to having appropriate functionality, the design also needed to have play value. R&D included identifying the right combination of materials that would allow for a design that could be easily manufactured, shipped, stored and withstand the rigors of child play. The container’s design required testing and experimentation to ensure product safety and functionality.

WHY Source Advisors

Source Advisors performs an initial feasibility analysis prior to engaging a customer to help set potential credit expectations and explain the process. After evaluating other providers, this packaging company chose to work with Source Advisors based on their phased approach and endorsement from their CPA. Source Advisors’ thorough analysis of the company’s specific R&D situation and tax position is critical to ensure they are maximizing tax credits for their innovative packaging designs.

THE RESULTS SPEAK FOR THEMSELVES

Over a five-year period, the company was able to claim in excess of $750,000 of R&D tax credits. This was over $140,000 more than the estimate provided during the feasibility analysis. The tax savings generated from these credits were used to further conduct R&D to meet additional customer requests and expand product offerings into other markets.

HIGHLIGHTS

  • PACKAGING INDUSTRY
  • $750,000 IN TOTAL
    R&D CREDITS
  • ACTUAL CREDITS 22%
    HIGHER THAN INITIAL
    ESTIMATE
  • $30M GROSS REVENUE