Industry: Manufacturing
Company Size: 50 Employees
Annual Revenue: $9M
R&D Tax Credit Savings: $175,000
Challenges in Manufacturing
A mid-sized manufacturer specializing in custom industrial equipment was struggling with inefficiencies in their production line. To improve product consistency and reduce material waste, they invested in process automation, new fabrication techniques, and quality control testing.
While they knew they were making technical improvements, they were unaware that these activities—such as trial-and-error testing, refining automated workflows, and integrating new materials—qualified as R&D under IRS guidelines.
Our Approach
1). Process Evaluation: Worked with their engineering and operations teams to pinpoint R&D-qualified activities, including workflow optimization, material experimentation, and automated system upgrades.
2). Expense Analysis: Captured eligible expenses, including wages for process engineers and automation specialists, costs of prototype materials, and third-party testing fees.
3). IRS-Compliant Documentation: Prepared a detailed audit-ready report outlining their experimentation process, technological challenges, and final improvements.
4). Strategic R&D Planning: Developed a repeatable tracking system for future R&D projects, ensuring ongoing tax credit eligibility.
Outcome
- Secured a $175,000 R&D tax credit, reducing tax liabilities and freeing up cash flow.
- Enabled reinvestment in additional automation technologies and expanded production capabilities.
- Created a scalable system for documenting R&D efforts, ensuring compliance for future claims.
Maximize Your Manufacturing R&D Savings Today
At Credits Granted, we help businesses across all industries unlock hidden tax savings. Want to see if your company qualifies? Schedule a Free Consultation today.
