The cannabis software development industry is rapidly evolving, and software and mobile applications provide a range of services to hemp farmers, manufacturers, distributors, and retailers. What began as seed-to-sale applications to allow companies to track inventory has evolved into full enterprise management solutions. Applications can monitor state-based regulatory compliance, provide customer relationship management (CRM), and a host of other functions. A significant percentage of the costs incurred in the research and development (R&D) of cannabis software and/or mobile applications can be offset by claiming 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.