R & D Case Study

Situation

Our client owns an automation and motion control distribution center. Before working with us, the company had not taken advantage of the research and development tax credits.

Response

We reviewed the client’s value-added solutions in order to take advantage of the research and development credits. We conducted several extensive on-site interviews and toured the workplace to find possible related activity. During these interviews, we spoke with owners, engineers, salespeople, etc., to get a better feel for specific qualifying projects. We found several examples where the client automated or modified products to achieve greater efficiency. In each example, the client used a trial and error process when designing the new system. Often times, several prototypes were built, which added to the research and development opportunities.

Outcome

We found credit for the years 2002 through 2004, which totaled over $100,000. This money can be used as tax credit dollar for dollar.