Case Studies

R&D Tax Credits for Tool and Die Industry

A Comprehensive Source Advisors Case Study

R&D Tax Credits for a Tool and Die Company

The Tool & Die industry is a hive of innovation, with companies constantly pushing boundaries in engineering and design. However, many firms are unaware that their R&D efforts could qualify them for significant tax credits, potentially saving them thousands or even millions of dollars.

What Qualified as R&D?

For this firm, R&D started with initial client discussions and went all the way to the final product. Key qualifying activities included exhaustive 3D modeling, finite element analysis, and numerous iterative cycles of prototypes and validation efforts. Each of these stages presented its own set of complexities but were essential for delivering a quality product.

The Source Advisors Solution

The company was introduced to Source Advisors through a referral from their CPA. Source Advisors specialized in identifying projects and expenditures that could qualify for R&D tax credits. They quickly moved into a “feasibility” phase to remove any uncertainty surrounding the R&D credit process.

Feasibility Analysis

Source Advisors began by conducting interviews and assessing documentation to identify the full scope of qualifying R&D activities. This comprehensive groundwork laid the foundation for a successful tax credit claim.

Financial Impact Assessment

Our specialized financial tools estimated potential tax credits, providing valuable insights for the firm’s financial strategy and resource allocation.

Compliance Checks

Source Advisors ensured that all documentation aligned with R&D tax credit regulations. We prepared all forms, schedules, and supplemental materials, making certain that the company was in full compliance with tax laws.

The Results Speak for Themselves

The company successfully qualified for significant R&D tax credits, not just for the initial project but also for multiple other initiatives. These credits have been consistent year after year. After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:

$ 0
in qualifying R&D expenses
$ 0
in Annual tax credits

With the assistance of Source Advisors, the company not only secured substantial financial benefits but also gained the expertise to continue maximizing their R&D tax credits in the years to come.

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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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