The cannabis and analytical cannabinoid testing industry plays a pivotal role in companies’ ability to bring products to market. In many cases, raw material and end-product testing are requested to obtain certiﬁcation that a product is safe and effective. Testing labs can also determine terpene ratios, heavy metal contamination, and potency of cannabis and hemp strains, allowing companies to make informed decisions regarding their breeding and growing programs. These laboratories invest signiﬁcant resources in the creation of in-house assays for purity, pesticides, pathogens, and a host of other tests. Testing labs can recoup costs associated with novel assay development through the Research and Development (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.