Issue
Our client needed to complete a 2025 research and development (R&D) tax credit study on an accelerated timeline while addressing competitive pressure from a third-party firm, heightened client due diligence requests, and technical issues involving controlled-group considerations, short tax periods, multistate credit modeling, and state conformity implications. The engagement required CBIZ to reinforce client confidence, quickly translate complex technical issues for the client’s tax and operational teams, and produce a defensible federal and state benefit analysis in less than one month.
Solution
CBIZ mobilized a coordinated national R&D team to stabilize the relationship, scope the study, educate subject matter experts, collect documentation, conduct interviews, model qualified research expenditures, and prepare client-ready deliverables. The team executed parallel workstreams across remote assessment, onsite data collection, subject matter expert (SME) interviews, calculation, review, and filing support. The study focused on activities in process development, engineering, water treatment solutions, chemical operations, agriculture, testing, validation, and operational improvement. CBIZ also emphasized future documentation priorities, including engineering drawings, design revisions, calculations, pilot testing, field trials, technical reports, meeting notes, project scopes, change orders, time tracking, SME confirmations, and technical review signoffs.
Outcome
CBIZ delivered an estimated total R&D tax credit benefit of approximately $557,000, including approximately:
- $392,000 of federal credit
- $165,000 of various state credits
Total qualified research expenditures were approximately $4.28 million, consisting of approximately $4.07 million of wage Qualified Research Expenses and $210,000 of supply QREs.
Beyond the immediate tax benefit, CBIZ helped the client establish a more sustainable annual R&D process by educating SMEs, identifying documentation priorities, and creating a stronger foundation for future study efficiency and
audit defense.
| Company Information | |
|---|---|
| Industry | Water Treatment |
| Entity Type | 1120 |
| Ownership Structure | Holding company with seven disregarded entities |
| Geographic Footprint | Minnesota, Indiana, Texas, California, Pennsylvania, South Dakota, Wisconsin, Arizona, Louisiana, Iowa, Colorado, Illinois, and Michigan |
| Number of Employees | 478 |
| Annual Revenue | $130M+ |
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“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.
