At NestWorth, we take pride in helping businesses discover hidden opportunities for financial growth through specialized tax credits. One of our recent successes involved partnering with an anonymous mining services company, which resulted in significant tax savings.
The Challenge
This company, a contractor providing essential labor and services to underground and surface mining operations, was consistently investing in innovation without fully leveraging potential tax benefits. Their operations involved improving equipment, developing new processes, and continuous prototyping—efforts that qualified for substantial tax credits but had gone untapped.
The Approach
NestWorth, working in conjunction with Business Incentive Solutions (BIS), conducted an in-depth analysis of the company’s activities and expenditures over the past three years. Our team focused on their Qualified Research Expenditures (QREs) related to designing, testing, and refining specialized equipment and procedures used in mining.
The company’s consistent improvements, such as designing and testing new nozzles and enhancing concrete spray equipment, showcased a clear commitment to R&D efforts. Additionally, they utilized an off-site testing facility to simulate real mine conditions and optimize safety and performance.
The Results
Our comprehensive assessment revealed that the company was eligible for federal R&D tax credits, which translated into substantial tax savings. By documenting their innovative efforts and aligning them with the IRS’s four-part test for qualified research, NestWorth was able to secure $941,497 in tax savings for this mining services company. This significant reduction in tax liability has empowered them to reinvest in their ongoing innovations and enhance their operational efficiency.
Conclusion
This case exemplifies how NestWorth’s targeted analysis and expertise can uncover lucrative opportunities for businesses in various industries. The result not only improved the company’s financial position but also highlighted the value of proactive tax credit assessments.
Want to unlock potential tax savings for your business? Contact NestWorth today for an assessment and see how our tailored approach can benefit your bottom line.
