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.
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.