The list of cannabinoid-containing products available on the market is growing at an astounding rate. From pet treats, lotions, and bath bombs, to teas, sodas, and chocolates. A considerable amount of research and development (R&D) is required to bring these products from concept to consumer, including testing, revising, and scaling up for mass production. Product developers must account for potency, purity, and taste, and consider the concentration and ideal mechanism of delivery. If you are operating in this space, there is a strong likelihood that the time and money you are investing in your new product could be eligible for signiﬁcant tax savings through the R&D Tax Credit.
The R&D Tax Credit is an activities-based credit. Employee wages, raw materials and supplies, and third-party contractor costs associated with R&D activities are considered qualiﬁed research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates.
Use our Hemp Tax Calculator to estimate your potential beneﬁt, and partner with HempTax to claim your beneﬁts with no up-front costs. Contact one of our experts today.