CASE STUDY


ELECTRICAL DESIGN

HIGHLIGHTS

  • ELECTRICAL DESIGN
    INDUSTRY
  • VALUE GAINED FROM
    CONTRACT LANGUAGE
    CHANGES
  • SPECIALTY FIRMS HANDLE
    R&D TAX CREDITS
  • $290,000 ANNUAL
    R&D CREDIT

Established in 1948, this electrical contracting company has grown to be one of the largest and the most respected electrical contracting companies in their area. While servicing both commercial and residential electric needs, they recently added low voltage services to satisfy the growing market need.

R&D QUALIFICATION

This electrical contracting company provides unique design work based on specific customer needs in addition to standard installation, maintenance, and repair duties, which would not qualify for research credits. The designs require research to evaluate electrical systems, products, components and applications. These designs require multiple design revisions and testing. Company engineers as well as third party vendors were responsible for the designs.

WHY Source Advisors

A referral from a business acquaintance led this electrical contracting company to Source Advisors. CPA firms generally don’t handle R&D tax credits but rely on boutique firms. To ensure the firm was maximizing R&D tax credits, Source Advisors took the time to fully understand their various activities and educate company personnel on the R&D tax credit rules. Aside from the standard challenges with R&D tax credit qualification, this firm also utilizes 3rd party vendors in addition to their W-2 project engineers for design. To ensure the firm was maximizing R&D tax credits, Source Advisors took the time to fully understand their various activities and educate company personnel on the R&D tax credit rules.Together they were able to carve out the activities and costs that qualify as research.

THE RESULTS SPEAK FOR THEMSELVES

This electrical contracting company thought the process was “very easy and self-explanatory”. With Source Advisors’ expertise, this company realized a combined annual federal and state credit of $290,000. Since they had sold a portion of their business and were looking at a large tax bill, generating this substantial credit made a huge impact on reducing their tax liability. The Source Advisors Tax Controversy Team also helped the firm make general changes to their 3rd party contracts to more clearly define who holds the risk and design rights, which ultimately affect R&D tax credits going forward.

HIGHLIGHTS

  • ELECTRICAL DESIGN
    INDUSTRY
  • VALUE GAINED FROM
    CONTRACT LANGUAGE
    CHANGES
  • SPECIALTY FIRMS HANDLE
    R&D TAX CREDITS
  • $290,000 ANNUAL
    R&D CREDIT