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.