Both Federal and State research and experimentation tax credits reward companies based on their investment to developing new products and processes. However, one of the greatest misnomers involving these credits is that many companies do not think they qualify. To the contrary, these credits are not limited to companies that solely provide product development — they are equally applicable to companies that develop new processes including improved efficiencies. Likewise, companies may claim the credit even for products that they have developed to sell to their customers. In fact, many of our clients claim their credits based solely on what they invest in developing a new product or process for their customers.
McGuire Sponsel’s research and experimentation tax credit practice conducts retroactive studies, current year engagements, and risk advisory services. Our professionals combine an understanding of tax law with engineering disciplines to maximize companies’ research credits and reduce their overall tax burdens. McGuire Sponsel provides documentation to withstand the highest level of IRS and state tax authority scrutiny.