Manufacturing

Qualified R&D Expenses (Annual Avg): $6,000,000
Combined Benefit Across All Four Years: $1,820,000

The Challenge

The client’s engineering and design teams were fully absorbed in rapid prototyping, tooling refinement, tolerance optimization, and solving customer specific manufacturing challenges. Documentation was informal, past attempts at identifying qualified work were incomplete, and the firm had never amended prior year returns.

Under the older tax rules that required amortization of R&D expenses, the company had paid more in taxes than necessary. With the Big Beautiful Bill reinstating full expensing for domestic R&D and allowing amendments for 2022, 2023, and 2024, the client needed a partner who could move quickly and accurately.

They wanted:
• Precise identification of qualified engineering work
• Minimal disruption to production schedules
• A fully audit ready study for each amended year
• A clear roadmap for future compliance and ongoing claims

Our Approach

InfoLink combined AI efficiency with white glove service to give the client a fast, low lift experience across four study years.

Our team streamlined data collection, sorted engineering activity by project group, and translated technical manufacturing work into IRS compliant documentation.

We identified and documented qualified activities across:

• Design and development of custom machine parts and complex assemblies
• Tooling improvements and production process optimization
• Prototyping and testing of new part geometries and materials
• Iterative refinement of CNC programs and machining workflows
• Enhancements to tolerances, durability, and performance
• Development of new fixtures, jigs, and automation steps for efficiency
• Engineering leadership engaged in design review and problem solving

Each activity was mapped to the IRS four part test, and all four study years were completed with full audit defensibility. The client received clear documentation for every qualifying project, creating a repeatable process for future claims.

The Outcome

Across tax years 2022 through 2025, the client secured an estimated $1.82 million dollars in federal R&D tax credits.

The Big Beautiful Bill allowed the client to amend 2022, 2023, and 2024, restoring full expensing for domestic R&D and generating significant refunds. The newly completed 2025 study continued this momentum with a clear, repeatable process.

The client’s internal time commitment was minimal, and the documentation package was built to withstand review at the federal level.

Recovered funds are now being used to:
• Invest in new machining technology
• Expand engineering capacity
• Accelerate product development
• Improve throughput and efficiency on the factory floor

A Time Sensitive Opportunity

The amendment window created by the Big Beautiful Bill will not remain open indefinitely. Companies with domestic R&D activity from 2022 to 2024 may be able to recover substantial amounts of money if they act within the available timeframe.

A call with an InfoLink specialist can confirm eligibility and outline the timelines that apply to your business.