Company Profile

Tri-Power Design LLC, an ISO 13485 and 9001 certified engineering and manufacturing company, is known as a problem solver. The company has earned this reputation by applying the latest technologies in order to help a customer’s idea evolve from original concept to finished product.

In some instances they’ve literally put products that grew from a sketch on a napkin  into a surgeon's hands and moved a preliminary foam model through the manufacturing process to end up on the store shelf.  They have accomplished this because of their unique competency in designing and building custom automation machines and factory robots that package/ build assemblies from a multitude of parts, in seconds.

With over 20 years of experience in solving multidisciplinary engineering challenges in a think-tank environment, Tri-Power Design takes complex engineering challenges and turns them into solutions for the medical, pharmaceutical, aerospace, consumer product and manufacturing industries. Whether it is surgical instruments, critical bench top test equipment, test fixtures, or hi-speed transfer and assembly systems, companies see a high ROI with Tri-Power.

Over the last decade, Tri-Power's in-house manufacturing capability, located in its 8500 sq. ft. advanced manufacturing and prototyping facility, has grown to a level not usually seen in design firms.

The Situation

Like every small company, cash flow can be an issue. When looking for ways to improve the situation, Tri-Power Design turned to New Jersey Manufacturing Extension Program, Inc. (NJMEP).  The company had previously worked with NJMEP on numerous projects from ISO 9001:2008 (ISO 13485-Medical) certification to Energy Procurement. In response to a conversation with Tri-Power NJMEP introduced the company to Research & Development (R&D) tax credits. Since 2012 NJMEP has been working with Anthony La Rosa, Principal and Managing Partner at Tri-Power on improving cash flow through R & D Tax Credits. 

Most manufacturers are not aware that many of their typical day-to-day processes qualify as research expenditures.  

The Solution

With guidance from NJMEP, Tri-Power Design prepared documentation to support the Federal R & D Tax credit filing by:

  • Identifying qualified research and development activities
  • Determine all qualifying expenses (wages, supply expenses, and contract expenses) attributable to the identified research efforts. This was done by collecting various types of contemporaneous documentation, including W2s, vendor invoices, etc. that were used to calculate final figures relating to the Internal Revenue Service and NJ state tax credits
  • Assemble technical supporting documentation
  • Delivery of the final R&D Tax Credit Study
  • NJMEP also will provide four  hours of support in the event that the tax credit claim and/or supporting documentation is subjected to questions, review or audit by either the IRS or the State authorities.

The Results

Leveraging R & D Tax credits, in one year alone, allowed Tri-Power Design to:

  • Reinvest money for long term growth
  • Achieve a tax credit value of over $30,000
  • Achieved a cash value saving of over $20,000

As Tri-Power Design has discovered, R & D tax credits can serve as a way to reduce a qualified company’s tax burden, freeing up additional cash to reinvest in a company and indirectly allowed for more spending in other areas.