The following industries are undergoing rapid and exponential growth due to the removal of industrial hemp from the controlled substances list. Many companies investing in innovation are unaware that these costs can be offset through the Research and Development (R&D) Tax Credit. If your company is operating in any of these areas, there is a strong likelihood that your ongoing R&D efforts qualify.
Software development yields some of the highest credits due to the significant investments needed to bring an application from idea to market. The field of cannabis software is rapidly expanding, and companies can recoup a portion of their considerable development costs.
Developing new assays is a research-intensive process. Companies that invest in creating new tests or methodologies, or make improvements to existing protocols, are eligible for tax savings from the IRS.
New formulations with higher potency, purity, and cannabinoid content are possible due to advances in cannabinoid extraction technologies. Companies innovating in this space are eligible for significant tax savings and credits.
Research and development is required in almost all phases of bringing a product to market, from concept to manufacturing to packaging. Whether your company is creating a new CBD-based product or improving an existing line, your activities most likely qualify.
Innovations in harvesting, processing, and extraction are revolutionizing the industry. Designing, testing, and refining novel equipment requires extensive R&D, and the costs incurred in this process can be claimed to offset current and future tax liability.
Removal of hemp from the controlled substances list is propelling rapid advances in cannabis genetics. Cross-breeding to produce new strains with the desired traits is an expensive and time-consuming process. These efforts qualify for federal and state tax savings.
Hemp farmers are constantly exploring ways to improve yield, reduce costs, and increase efficiencies. Developing new methods requires investments in equipment, technical expertise, and supplies. A portion of these costs can be recouped through the R&D Tax Credit.
Biofuels, building materials, and plastics are just a few of the ways hemp fibers are being transformed into novel products. The costs associated with developing new uses for an ancient plant can translate to significant tax savings for your company.
Many companies are striving to reduce waste and their environmental impact. Developing innovative and sustainable packaging solutions is critical to achieving this goal, and the costs associated with these efforts are claimable through the R&D Tax Credit.