Success Stories

Start-Up Auto Parts Manufacturing Company

(These success stories are real projects. The information has been generalized to protect client confidentiality.)

Entity X was a recently established manufacturer of components for the Automotive Industry. The owners of the company and their internal tax personnel did not believe that Entity X could qualify for the Research Credit because of the high regulatory Fixed Base Percentage mandated by their Start-Up status under §41 (for purposes of the Research Tax Credit). Entity X was referred to The Miller Group by their public accounting auditors, who were familiar with the positive experiences of other clients.

The Miller Group examined the operations of Entity X and completed a Research Tax Credit project addressing its first several years of operation. The project qualified activities and expenses for both Federal and State Research Tax Credits. Although Entity X did not qualify for Research Credits in every year of operation, Research Credits were available in several open tax years. Federal §41 Research Tax Credits averaged $110,000 annually in the available period. State Research Tax Credits averaged over $50,000 annually for Entity X.

Entity X’s situation is common for manufacturing Start-Ups. The complexity of the §41 regulations for new entities makes it difficult to project Research Credit benefits from superficial information.

Substantial Research Credits are often available to new entities following comprehensive analysis and documentation. In many localities, State Research Tax Credits multiply the resulting benefits.

The Miller Group can assist you in recovering tax dollars paid or owed. Move taxes paid to bottom line profits.