Tier 1 Automotive Manufacturer secures over $10 Million in SR&ED Tax Credits

Tier 1 Automotive Manufacturer secures over $10 Million in SR&ED Tax Credits

In the competitive world of automotive manufacturing, innovation is the key to staying ahead of the curve. For one global automotive parts manufacturer, securing innovation funding was a critical challenge. Year after year, they faced audits while attempting to claim SR&ED (Scientific Research and Experimental Development) tax credits on their own, which only led to frustration and uncertainty. Then they connected with Ayming, a trusted partner in innovation funding, with a proven track record of success. In this narrative of accomplishment, we’ll explore how Ayming helped this Tier 1 automotive manufacturer secure over $10 million in tax credits while navigating the complex world of innovation funding.

The SR&ED Audit Challenges

The client, a major player in the global automotive industry, had been striving to secure SR&ED tax credits on their own. Their endeavors were consistently met with audits, leading to an ongoing cycle of unpredictability and exasperation. The root of the problem lay in the way their projects were described – they lacked clear technological objectives and proper documentation, making them vulnerable to audits.

The Holistic Approach to SR&ED Transformation

Ayming took a comprehensive approach to tackle the client’s challenge head-on.

• Company-wide SR&ED training: Ayming provided SR&ED training sessions for both R&D and manufacturing groups within the company. This helped the client’s teams gain a better understanding of SR&ED eligibility criteria and the importance of proper documentation.
• Early project review meetings: In the early fourth quarter, Ayming scheduled meetings to review the client’s work and determine project groupings. This proactive approach allowed the team to address any documentation shortcomings and gather costing information well before the fiscal year-end.
• Technical interviews: A crucial step was scheduling and conducting technical interviews before the fiscal year-end. This ensured that the client had ample time to refine documentation and gather all necessary data.

The Remarkable Results

Ayming’s strategic approach led to remarkable results for the Tier 1 automotive manufacturer.

• Audit-free for nine years: With the help of Ayming’s expertise, the client has not faced a single audit in the last nine years. This newfound stability has eliminated the stress and uncertainty of audits.
• Over $10 million in tax credits: On average, Ayming’s experts secured $1.03 million per year, totaling over $10 million in tax credits over the course of nine years. This substantial financial boost has allowed the client to invest further in research and development.
• Increased claim size: By effectively capturing smaller projects and maintaining a strong technological narrative, Ayming has helped increase the size of the claims. This optimization maximized their potential tax credits.
• Streamlined claim preparation: Ayming’s well-defined claim preparation process allowed for timely completion and delivery well in advance of corporate filing deadlines. This efficiency was highly valued by the client.

Ayming’s partnership with this Tier 1 automotive manufacturer exemplifies the transformative impact of expert guidance in securing SR&ED tax credits. By aligning projects with SR&ED frameworks, providing training, conducting technical interviews, and streamlining the documentation process, Ayming enabled the client to not only navigate the complex world of innovation funding, but also thrive in it. The results speak for themselves – over $10 million in tax credits secured and nine audit-free years. This success story stands as a testament to the power of strategic collaboration and the importance of expertise in innovation funding.

Find out how we can help you secure SR&ED tax credits and other government funding by contacting us today.