Cannabis Software

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.

Example activities that qualify:

• Writing new code to improve an existing application
• Beta testing a new user interface with additional features
• Creating novel enterprise relationship management (ERP) solutions software
• Developing a new point-of-sale application to track inventory and optimize processes
• Customizing software based on state-specific restrictions
  

Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?

• Back-end/Full-stack Developers
• C-Suite
• Consultants
• Data Analysts
• Product Managers
• Software Developers
• Software Engineers
• UX/UI Engineers

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.