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Research and Experimentation Tax Credit
Retroactive Study: Chemical Manufacturer
Client Profile
McGuire Sponsel was engaged by a chemical manufacturer involved in initial formula development through mass productions that had large investments with its laboratories. The company has annual revenue of $20 million.
The Challenge
Due to the highly technical nature of the products that the company develops and manufactures, McGuire Sponsel conducted on-site individual and team interviews led by a tax specialist with an extensive engineering background, extensive plant tours and a comprehensive review of contemporaneous documentation. McGuire Sponsel was able to utilize 38 of the company’s employees that participated in either the development of the product or the technical support of the product in seeking qualified tax credits.
Study Results
Over a three-year period, McGuire Sponsel identified $4 million of Qualified Research Expenses (QREs), resulting in $250,000 in federal tax credits.