Equipment Manufacturers

The technological advances currently underway in the industrial hemp / cannabinoid equipment manufacturing industry are substantial. From state-of-the-art harvesting equipment to automated extraction and distillation systems, companies are developing innovative ways to increase efficiency, output, safety, and ease of use. The research and development (R&D) costs expended in the creation or improvement of these systems can be significant. Fortunately, some of these costs can be offset through the R&D Tax Credit.

The R&D Tax Credit is an activities-based credit. Employee wages, raw materials and supplies, cloud computing, 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:

  • Adding robotics or automation to an existing system to improve efficiency
  • Developing software that streamlines or facilitates the end-user experience
  • Designing and manufacturing new hemp harvesting and/or in-field processing equipment
  • Modifying existing systems to conform to regulatory requirements
  • Experimenting with various extraction equipment to optimize yield results
  • Implementing design changes that improve efficiencies, safety, or yield

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

  • C-Suite
  • Chemical Engineers
  • Chemists
  • Electrical Engineers
  • Machinists
  • Mechanical Engineers
  • QA/QC Personnel
  • Master Extractors / Technicians
  • Regulatory Personnel
  • Welders

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.

Want a quick estimate for your company?

Calculate my Credits

Got questions? Schedule a quick call with an R&D expert.

We’ll walk you through our process and take the time to understand yours to make sure you get the most back.

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Need more info? Schedule a time to connect with our team.

How much could I get back in R&D tax credits?

Great question! Try out our R&D Tax Credit Calculator to see the value of your R&D tax credit reward.
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