Tax Strategy Case Studies

Real-world examples of how our tax strategies have helped manufacturing businesses save money, improve compliance, and optimize their tax positions.

"These case studies demonstrate proven approaches that have delivered measurable tax savings for manufacturers across various sectors."

Tax Strategy Case Studies for Manufacturers

How Our Tax Strategies Create Real-World Impact

Each case study below represents a real manufacturing business that faced tax challenges. We've changed names and specific details to protect client confidentiality, but the strategies, approaches, and results are authentic. Explore these examples to see how similar approaches might benefit your manufacturing business.

R&D Tax Credits

Precision Metalworks: $380,000 in Overlooked R&D Credits

A mid-sized metal fabrication company with $12M in annual revenue was unaware they qualified for R&D tax credits for their process improvements and custom tooling development.

Challenge:

The company had been investing heavily in improving manufacturing processes and developing custom tooling solutions but had never claimed R&D tax credits, potentially leaving hundreds of thousands of dollars unclaimed.

Solution:

Our team conducted a comprehensive R&D study, documenting all qualifying activities over the past three open tax years. We identified numerous qualifying projects, including:

Development of new metal forming techniques
Custom tooling design for specific client applications
Process improvements that reduced material waste
Testing and validation of new manufacturing methods

Results:

We secured $380,000 in R&D tax credits for the three-year lookback period, plus established a system to track and document ongoing R&D activities for future tax years, resulting in approximately $120,000 in annual tax savings.

ROI

12x return on their investment in our tax services

Multi-State Tax Planning

Northeast Electronics: Resolving $220,000 in Multi-State Tax Exposure

A growing electronics manufacturer with $18M in revenue expanded sales into 12 states but had not properly addressed nexus and state tax filing requirements.

Challenge:

The company faced significant tax exposure, potential penalties, and compliance issues across multiple states where they had established nexus through sales activities and inventory placement.

Solution:

We implemented a comprehensive multi-state tax strategy:

Conducted a nexus study across all states with business activity
Utilized voluntary disclosure programs to minimize penalties
Restructured inventory placement and fulfillment operations
Implemented state-specific tax planning strategies
Developed ongoing compliance procedures

Results:

We reduced their multi-state tax exposure by 65%, saving approximately $143,000 in potential tax liabilities and penalties. The restructured operations resulted in an additional $78,000 in annual state tax savings.

ROI

8x return on their investment in our tax services

Cost Segregation

Midwest Packaging: $520,000 Tax Savings Through Cost Segregation

A packaging manufacturer purchased a $4.8M manufacturing facility but was depreciating the entire property over 39 years as a commercial building.

Challenge:

The company was missing significant depreciation deductions by not properly identifying components that qualified for accelerated depreciation through cost segregation.

Solution:

We conducted a detailed cost segregation study that:

Identified $1.9M in assets qualifying for 5-year depreciation
Reclassified $850,000 in assets to 7-year property
Identified $720,000 in assets qualifying for 15-year depreciation
Applied bonus depreciation where applicable

Results:

The cost segregation study generated $520,000 in tax savings in the first year through accelerated depreciation deductions. The company used these tax savings to invest in new production equipment, further enhancing their manufacturing capabilities.

ROI

20x return on their investment in our tax services

Key Insights From Our Tax Strategy Case Studies

Proactive Planning Pays

Manufacturers who proactively plan their tax strategies save significantly more than those who take a reactive approach. Early planning allows for structural decisions that maximize tax benefits.

Documentation Matters

Proper documentation of activities, especially for R&D credits and cost segregation, is crucial. Manufacturers who implement systematic documentation processes capture significantly more tax benefits.

Industry Specialization

Manufacturing-specific tax strategies yield better results than general approaches. Industry knowledge allows for identification of tax opportunities unique to manufacturing operations.

Discover Your Tax Saving Opportunities

Every manufacturing business has unique tax saving opportunities. Let us help you identify and implement strategies tailored to your specific situation.

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