Tapping into global credits and incentives for chemical manufacturer

Our client’s need

A privately-held global manufacturer of household cleaning supplies and chemicals was made aware, through a Baker Tilly advisor, that activities related to its manufacturing process at their Mexico facility might qualify for the Mexican R&D credits incentive. The company lacked the resources or background necessary to compile the required information to evaluate the costs and activities to submit a viable claim so enlisted Baker Tilly

Baker Tilly solution

Baker Tilly international tax and credits and incentives specialists and professionals with Spanish language skills were mobilized to assist the company expeditiously. Through a collaborative effort with the client, Baker Tilly provided the accounting, tax, and engineering expertise required to explore and document R&D activities, and comply with the requirements of filing a financially optimal R&D claim with the Mexican government. The team further leveraged its long-standing relationship with the Mexican regulatory agency that administers the R&D tax credits to ensure a successful result.

Results achieved

Taking advantage of Baker Tilly’s approach to identify eligible R&D projects and associated expenditures within the company’s normal course of operation helped to secured credits in excess of $1 million USD (approximately $13.1 million pesos)