Case Study

R&D Case Study: Datawheel claims $349,332 in tax credits

    • 15-05-2023
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Substantial credit for 4+years!

Discover how Datawheel, a company focusing on big data and making them accessible for the world, claims significant tax credits with Leyton.

How They Were Innovating

Among many R&D projects at Datawheel, a number of qualifying projects were derived from their DataLocation services. One is Data USA: A platform that leverages over 21 different publicly available data sets to serve as a public service tool to enable informed decision making. This platform synthesizes and visualizes available public data sets such as: labor data, economic data, & other types of social data to provide an improved comprehension of the US as a whole. Another qualifying project includes data synthesis and visualization for the Center for Disease Control (CDC). The project was developed in late 2020 and has faced several challenges that were solved through a process of experimentation into how to ingest, structure, and organize data.

Impact of the R&D Tax Credit

Once Leyton’s tax and technical teams qualified the related expenses to their research and development projects, we were able to build a substantive R&D Tax Credit claim for the client. It was backed by a comprehensive R&D Study that explains how each project meets the IRS criteria to claim the credit. Founder, Dave Landry, explains how our technical team was “nice to have a counterpart that understands the “tech” behind our projects, because that’s always the hardest thing to communicate. For Leyton’s software team to catch that, really understand it and transform it into a report was a big help!” Datawheel has been claiming their Federal R&D Tax Credit with Leyton since 2016.

2020 Qualified Research Expenditures (QRE) for Datawheel:

  • 70% of employee salaries qualified: job titles include software architects, economists, front end and back end developers, CTO, & Co-founders.
  • 48% of contractor costs.
  • 48% of cloud computing costs for developing data visualization platforms.

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I see the value in that. It was an interesting exercise to look back at our projects and uncover qualifying R&D. We filed amended returns, recouped the money, and put it back into the company!

Dave Landry, Co-founder, Datawheel Datawheel

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