In many cases, companies decide against pursuing R&D tax credit savings for one of two reasons. One, they think R&D tax credits apply exclusively to the science and technology fields. And two, they find obtaining R&D tax credits cost-prohibitive.
At Cunningham and Associates, we provide unrivaled service in tax and estate planning at a fraction of the cost of national firms. Only one in 20 companies take advantage of the R&D Tax Credit scheme because they don’t know if they qualify.
Recently, our client in the architecture and engineering industry came to us for help obtaining R&D tax credits at an affordable price. Here’s how we delivered.
A Common Problem with R&D Tax Credit Savings Solved
Pull up a seat. It’s storytime. This year, a national firm reached out to a company in the architecture and engineering industry — a custom builder — about obtaining R&D tax credits. The builder contacted his CPA to discuss.
The CPA thought it was a great idea. But, the fees the national firm wanted to charge would have amounted to one-third of the total credit savings the builder would get. For the builder, this wasn’t the most advantageous way to obtain their tax savings. So, the CPA directed their client to us.
The CPA in this story is a previous client of ours, and in referring the custom builder to us, the CPA took back control of the process for obtaining R&D tax credits. Plus, we charge reasonable, fixed fees.
The winners of this story? The CPA and the custom builder.
Companies in many industries, including architecture and engineering, can obtain tax credit savings through the R&D scheme. Businesses do not have to be in the technology and science fields to qualify. Together with the client’s CPA, we identified qualified activities for R&D tax savings that the client’s employees perform.
- 3D modeling
- Value engineering
We also identified significant subtracted design expenses that also qualified the builder for the tax credits. We reviewed subcontractor expenses through interviews with the company’s management team and found additional qualified expenses for even more savings.
Ultimately, the custom building company owners gave us the inputs needed, and we completed the work without a major time commitment from them. Our efficient processes are the key to a project’s success.
Along with the client’s CPA, we obtained significant R&D tax credit savings for the client — $300,000 in savings plus a 10:1 ROI. Compared to the national firm’s fees, the client’s CPA saved 50% in fees by referring the project to us.
The bottom line is this project was a win-win-win for the client, the CPA, and C&A!
Do you balk at the prices other national firms are charging to find out if your business qualifies for R&D tax credits? Give us a call at (508) 797-5003 to see how much we can save you in fees and taxes.