Contractor Success Story

Tax Study Sparks Significant Savings for Electrical Contractor

Company Description:

The company is a leading security electronics, electrical, and telecommunications contractor. It employs nearly 300 electricians and technicians.

It is involved in the conceptualization, design, configuration, testing and installation of security and voice to data to video systems, solar panels and electrical power systems for its clients.

Specific Qualifying Activity:

In designing and engineering electrical systems, this company develops custom solutions for its clients. It continuously seeks innovative ideas utilizing new technologies in the electrical field. Specific qualifying activities include:

  • Electrical system concept and design
  • BIM modeling
  • Electrical installation process improvements
  • Means, methods and construction techniques and process development
  • Structure and facility design for constructability
  • Design for LEED/Green initiatives
  • HVAC concept and design
  • Value engineering

Other Company Specific Factors:

While normally an R&D tax credit study can only include open tax years (typically the current year and the three prior years), Tax Point determined that this company could go back to certain closed years and carry forward credits from them.

This resulted in a larger credit for the client, and they and their CPA did not have to amend returns for the closed years since the credits from those years simply carried forward to the first open year.

Ultimate Benefit to Company:

Tax Point estimated a mid-six figure credit range for the company during the assessment phase, but was able to find an additional $300,000 in credits above the original estimate.

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