Hemp genetics and IP companies employ cutting-edge science to develop seeds that produce crops with the desired characteristics: high yield, speciﬁc cannabinoid ratios, disease resistant, and suited for sustainable, large-scale production. Scientists and botanists employ a mix of traditional cross-breeding and genomics to identify, isolate, and instill qualities in hemp plants that satisfy a range of conditions. The majority of the research and development (R&D) involved in creating a marketable product (seed) can be claimed with 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.