R&D Credit Case Study
Manufacturing
We partnered with a Michigan-based precision manufacturer serving aerospace and automotive clients. The company’s engineering teams were engaged in continuous process improvement, materials testing, and product development to maintain a competitive edge. While these activities met the federal definition of R&D, the company had never documented them for the tax credit.
Federal Tax Credit
The Challenge
With global competition and rising material costs, the company was constantly iterating on designs, refining production methods, and developing custom tooling. Engineers were solving real technical challenges every day, but the work was going unclaimed for R&D benefits. The leadership team needed a way to identify and document eligible activities without slowing production or overloading plant staff.
Our Approach
We collaborated directly with engineering and production leaders to pinpoint where qualified research was occurring on the shop floor and in the design process. Using our AI-driven platform alongside targeted interviews, we identified:
Prototyping and testing of next-generation aerospace and automotive components
Process optimization and custom tooling design for efficiency and quality improvements
Material evaluations and testing of advanced manufacturing techniques
Engineering labor, material costs, and third-party validation linked to experimentation
Each activity was matched to the IRS four-part test and thoroughly documented to support compliance and audit readiness.
The Outcome
The company secured $162,500 in federal R&D tax credits based on $2.5M in qualified expenses. The process was efficient, required minimal time from the internal team, and allowed the company to capture a meaningful financial return on its innovation investments while maintaining production schedules.
