Success Stories

Braithwaite Global has helped a broad range of companies realize their entitlement to RTC tax credits.

Coating and Adhesive Industry

The company was able to claim over $200K of tax credits as a result of the most recent R&D study. Each year, the credit has increased as BGI incorporated relevant efficiencies and updates such as prototype costs in accordance with new IRS guidelines.

Coating and Adhesive Industry

Company Overview

This company is a leading manufacturer and distributor of coatings, films, and adhesives for many industries and business sectors. Over the years, they have acquired a number of adhesives companies and merged them to broaden their product profiles and provide custom solutions to their customers.

The company has expanded their capabilities beyond the traditional adhesives for footwear and packaging. They now focus on developing adhesives and coatings for customers in other industrial markets, including graphic arts, film conversion, flexible ducting, staple and nail, automotive, apparel, and construction.

There are three main categories of R&D activities conducted in the facility: new product development, technical services for new products (customer quality problems), and development of process improvements in plants.

BGI’s Value Add

The company had never claimed R&D credits due to their misconception of R&D activities. BGI conducted a site visit. Through our tutorial process and priority site visit methodology, qualified activities were identified, which resulted in a six figure credit. During this visit, BGI also met financial and technical experts to discuss the various types of projects that the company had performed over the years. After an in-depth review of operations and accounting, BGI identified over 100 qualified employees in addition to trial costs and contractor expenses.

After the initial study, the BGI team incorporated project efficiencies and a proven methodology, which significantly reduced the time obligation required from the very busy Subject Matter Experts (SMEs). For example, the contemporaneous documentation needed to establish the nexus between Qualified Research Activities (QRAs) and Qualified Research Expenditures (QREs) was easily established after minor revisions to the current documentation system. This reduced the time and effort to “hunt” or “track” down relevant documents.

Furthermore, BGI recently proposed five key strategies to conduct next year’s study in an even more efficient manner while maximizing the R&D credit benefit.

Outcome

The company was able to claim over $200K of tax credits as a result of the most recent R&D study. Each year, the credit has increased as BGI has incorporated relevant efficiencies and updates, such as prototype costs in accordance with new IRS guidelines.