Case Study: Technology Manufacturing

This technology manufacturing client has claimed $822,265 in R&D Tax Credits!

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The R&D Tax Credit Experience with Leyton

We engaged with Leyton in early 2019 to build a case and establish eligible R&D tax credits, both historically and for the current year. To date, Leyton have proven to be very knowledgeable in all technical areas of the tax laws and have been approachable and responsive whenever called upon. – Director of Finance

Background

This client produces high technology systems for military personnel and first responders, among others. The products they make utilize WiFi, WiGig, and, Bluetooth componentry and are often custom designed to a buyer’s unique specifications. Much of their business comes from the federal government.

Qualifying R&D Activity

We observed that most of the client’s contracts require it to design, test, and demonstrate multiple prototypes before a product is procured. This routinely puts them at economic risk since the prototypes can be rejected by the government. When this happens, the company must return to the drawing board. All the while, it maintains ownership of any intellectual property created to meet the customer’s requirements.

Result: $822,265 in R&D Tax Credits!

The client’s economic risk during the process, and its subsequent retention of IP rights to the technology created, qualifies many of their projects for tax credits. We helped them identify many eligible costs and helped them claim the R&D tax credit for the first time for years 2015 to 2018. We continued to build a partnership by helping them claim the R&D Tax Credit for 2019 and 2020 as well. As a result of their R&D study with Leyton, our client has been able to claim $822,265 in R&D Tax Credits.

The end document to support the historical claims is very comprehensive. We will continue to use Leyton in future years!