Case Studies

R&D Tax Credits for Mechanical Engineering

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Mechanical Engineering Companies

Mechanical and industrial engineering is an industry that constantly evolves through innovation. Renovating complex systems like those in pharmaceutical manufacturing plants often requires significant R&D efforts. Although often overlooked, such activities can qualify for R&D tax credits, but many firms struggle to identify what counts and how to claim these credits effectively.

What Qualified as R&D?

In this project, R&D was evident in the design of new piping systems, the incorporation of existing pipes, and the need to maintain optimal flow rates. Activities included evaluating multiple alternatives for pipes, utilizing computer-aided design software, and developing various system layout options. These activities qualified for R&D tax credits as they involved uncertainties that were systematically resolved through a cycle of design, testing, and analysis.

The Source Advisors Solution

Upon referral from their CPA, the firm chose Source Advisors to explore the possibility of R&D tax credits for the company.

Services Delivered

Feasibility Analysis

Our team initiated the engagement with an in-depth review of the firm’s projects and processes. We interviewed key project stakeholders, reviewed documentation, and applied our tax code expertise to map out qualifying R&D activities.

Financial Impact Assessment

Utilizing our proprietary financial modeling tools, we estimated the total tax credits the firm could claim. This informed the firm's financial planning, enabling them to allocate resources more efficiently.

Compliance Checks

We documented all the identified qualifying activities and related expenses, aligning them with the requirements under section 41 of the IRC. Additionally, our team prepared all the necessary submission forms, schedules, and supporting documentation to ensure a smooth claim process.

The Results Speak for Themselves

After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:

$ 0
in annual R&D tax credits

By leveraging our expertise, the firm not only claimed tax credits for the initial project but also for numerous additional initiatives. This has led to a continuous relationship with Source Advisors, ensuring they maximize their R&D tax credits year after year.

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Source Advisors dives deep into a company’s structure and research activities to maximize both federal and state R&D tax credits.

Contact Source Advisors to turn your R&D investments into financial advantages.

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