Geosyntec Consultants v. United States, No. 14-11107 (11th Cir. 2015)Annotate this Case
Geosyntec, a specialty consulting and engineering firm, filed suit seeking a federal income tax refund under 26 U.S.C. 41. Under section 41, a taxpayer may claim a tax credit for increased spending on qualified research. Geosyntec claimed that it was entitled to the research tax credit under section 41 for qualified research expenses that it incurred on client projects in taxable years, 2002-2005. The district court found that research conducted by Geosyntec under two particular contracts was funded by Geosyntec's clients, making Geosyntec ineligible for the research tax credit for those contracts. The court agreed, concluding that the district court was correct in its interpretation of section 41. Accordingly, the court affirmed the grant of summary judgment against Geosyntec.