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R&D Case Study: Construction and MEP

Franklin Chow on September 30, 2023

Case Studies

R&D Tax Credits for Construction & MEP Businesses

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Construction and MEP

In the Architecture, Engineering, and Construction (AEC) sector, R&D tax credits aren’t just for traditional engineering and design activities. Construction and MEP firms can also claim these benefits for a variety of innovative endeavors, from custom system design to novel construction methods. This Source Advisors case study explores how one construction firm leveraged these opportunities to achieve significant tax savings and fuel ongoing innovation.

About the Company

This full-service construction firm provides an array of services including Mechanical, Electrical, and Plumbing (MEP) engineering, and operates across the United States. They serve various sectors including Corporate, Cultural, Healthcare, Education, and more.

The Challenges

In a sector rife with complex requirements and considerations ranging from public safety to energy efficiency, the company engages in extensive R&D activities. These include evaluating building plans, developing MEP engineered systems, and implementing advanced construction techniques.

What Qualified as R&D?

Activities qualifying for R&D tax credits were numerous and involved the conceptual design phase, including energy and utility system assessments, architectural schematic reviews, and alternative MEP system discussions. Special focus was on electrical distribution systems, plumbing system design, and HVAC technologies. The company utilized advanced software like BIM and AutoCAD for detailed analyses, and often had to adapt their designs due to public access and safety concerns.

The Source Advisors Solution

After an initial feasibility analysis, Source Advisors engaged in a deep dive into the company’s construction and MEP activities to calculate potential R&D tax credit benefits.

Detailed Analysis

We evaluated every stage of the construction process, from design to implementation, identifying all qualifying R&D activities.

Financial Impact Assessment

Our team reviewed the company’s financial records, identifying the expenditures related to qualified R&D activities. An accurate estimate of the potential tax credits was calculated.

Compliance Checks

All identified R&D activities were cross-verified against federal and state tax laws to ensure they met the necessary legal criteria for claiming R&D tax credits.

The Results Speak for Themselves

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

$ 0
average annual tax credit

This financial leverage is essential for the firm to continue its work in developing innovative and safe construction solutions.

Request Feasibility Analysis

Get Started Today!

Don’t miss out on the valuable tax credits that could boost your businesses growth.

Contact Source Advisors to discover the untapped R&D tax credits that could significantly benefit your construction or engineering firm.

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R&D Case Study: Electrical Design

Franklin Chow on September 30, 2023

Case Studies

Unlocking R&D Tax Credits for Electrical Design

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Electrical Design

Even in a traditional industry like electrical contracting, there are frontiers of innovation to explore. Dive into this case study to learn how Source Advisors unlocked a treasure trove of R&D tax credits for one of the area’s most respected electrical contracting companies.

About the Company

Founded in 1948, this electrical contracting firm is a cornerstone in their community. It has evolved over time to include not just commercial and residential electrical services but also low voltage services to meet growing market demands.

The Challenges

Beyond the standard installation and maintenance services, the company invests in custom electrical designs to meet specific customer needs. This involves research, multiple design revisions, and testing, adding layers of complexity and financial risks to the projects.

What Qualified as R&D?

The company’s design activities, which involve a rigorous process of research, evaluation, and testing of electrical systems, components, and applications, qualified for R&D tax credits. These activities were conducted by both in-house engineers and third-party vendors, making the case more intricate but equally eligible for substantial tax benefits.

The Source Advisors Solution

Source Advisors stepped in following a referral from a business acquaintance. A feasibility analysis was first conducted to give an estimate of the potential R&D tax credit benefits.

Detailed Analysis

Thoroughly evaluated all custom design activities and the roles of third-party vendors in those projects.

Financial Impact Assessment

Carried out a meticulous financial study to estimate potential R&D tax credits.

Compliance Checks

Source Advisors educated the company’s team on R&D tax rules and identified the specific activities that qualified for tax credits, even fine-tuning third-party contracts to ensure compliance.

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 Combined Federal and State R&D Tax Credits

This allowed the company not just to offset its payroll tax but also to take the credit against their normal tax liability, due to their highly successful first year.

Request Feasibility Analysis

Get Started Today!

Don’t miss out on the valuable tax credits that could boost your businesses growth.

Contact Source Advisors today to explore how we can unlock tax advantages for your company.

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R&D Case Study: Electronics Manufacturer

Franklin Chow on September 30, 2023

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R&D Tax Credits in Electronics Manufacturing

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R&D Tax Credits for Electronics Manufacturing

From developing automation software to engineering custom fixtures, R&D in electronics manufacturing is anything but simple. Dive into this case study to discover how Source Advisors helped a seasoned electronics manufacturer claim substantial R&D tax credits.

About the Company

With over 30 years of industry experience and a dynamic team of 70+ employees, this electronics manufacturer provides a full range of services, from material evaluation and procurement to cable and wire harness production, printed circuit board (PCB) population, and complete electromechanical assemblies.

The Challenges

Managing diverse projects for a wide-ranging customer base necessitates continuous innovation. Each project presents its own set of R&D challenges, whether it’s developing automation software or creating custom-engineered fixtures for specific manufacturing components.

What Qualified as R&D?

Key qualifying activities included the development of automation software for component storage and delivery systems, as well as the design and testing of custom-engineered fixtures for precision manufacturing. Both involved multiple design iterations, material selections, and functionality tests.

The Source Advisors Solution

Source Advisors took a deep dive into the company’s varied R&D activities.

Detailed Analysis

Our team conducted an in-depth review of the company’s varied R&D activities, examining the complexity, required skill sets, and associated costs involved.

Financial Impact Assessment

We scrutinized financial records, looking at labor costs, material expenditures, and other overheads. Based on this, we calculated the potential tax credits that the company could realize.

Compliance Checks

The R&D activities identified were thoroughly checked against federal and state tax laws. We ensured that all supporting documentation met the criteria necessary for claiming R&D tax credits, making them audit-proof.

The Results Speak for Themselves

Source Advisors exceeded initial expectations by identifying R&D tax credit opportunities that resulted in:

$ 0
in realized credits
0 %
increase in federal credits over the next five-year period.

These tax savings have been instrumental for the firm, allowing further investment in innovative software solutions and strategies, thereby maintaining their competitive edge.

Request Feasibility Analysis

Get Started Today!

Don’t let potential R&D tax credits go unclaimed. Your next innovation might just be waiting for that financial push.

Contact Source Advisors today to explore how we can unlock tax advantages for your company.

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R&D Case Study: Financial Services

Franklin Chow on September 29, 2023

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Unlocking R&D Tax Credits in the Financial Services Industry

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R&D Tax Credits for Financial Services

In the high-stakes arena of hedge fund management, staying ahead of the curve is essential. This case study sheds light on how Source Advisors helped a mid-sized, seasoned hedge fund unearth untapped value through R&D tax credits.

About the Company


Founded over 15 years ago, this mid-sized hedge fund manages around $5 billion in assets primarily for pensions, endowments, and foundations. With strategies that span various asset classes globally, the company has positioned itself as a major player in the financial industry.

The Challenges

In a field that demands quick decision-making and high-risk management capabilities, the hedge fund had to develop its own proprietary software for trading and risk management. These sophisticated systems required continuous R&D to adapt to volatile market conditions, meet strict compliance requirements, and offer a competitive edge.

What Qualified as R&D?

The firm’s software development activities involved extensive research, testing, and collaboration among traders, developers, and risk managers. Projects typically ranged from developing advanced trading algorithms to building comprehensive risk management systems. The R&D was an ongoing, iterative process aimed at optimizing the firm’s trading performance and risk management capabilities.

The Source Advisors Solution

Before the engagement, Source Advisors conducted an initial feasibility study to establish a framework for potential tax credits. This was a decisive factor for the hedge fund in choosing Source Advisors over competitors.

Detailed Analysis

Our team scrutinized the specifics of the hedge fund's software development projects, considering factors like complexity, required skills, and associated costs.

Financial Impact Assessment

We reviewed various types of expenses, including labor, third-party software integrations, and other overhead costs. Based on this analysis, we calculated the potential R&D tax credits the firm could claim.

Compliance Checks

We ensured that the identified R&D activities met federal and state tax laws, including rigorous checks on supporting documentation, to ensure they were audit-proof.

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 tax credits

These tax savings have been instrumental for the firm, allowing further investment in innovative software solutions and strategies, thereby maintaining their competitive edge.

Request Feasibility Analysis

Get Started Today!

Don’t let potential R&D tax credits go unclaimed. Your next innovation might just be waiting for that financial push.

Contact Source Advisors today to explore how we can unlock tax advantages for your company.

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R&D Case Study: Health and Pet Care

Franklin Chow on September 29, 2023

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R&D Tax Credits for Health and Pet Care Industry

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R&D Tax Credits for Health and Pet Care Industry

In an industry where well-being is paramount, R&D is the cornerstone for innovation. Discover how Source Advisors transformed the R&D tax credit landscape for an industry-leading company specializing in health and pet care.