Genetics & IP Companies

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.

Example activities that qualify:

• Developing and analyzing new crosses and populations
• Creating strains optimized for production of CBD, CBG, CBN, terpenes, and others
• Experimenting with ways to improve the harvesting, drying, and curing processes
• Assessing strains for oil quality, protein content, or other characteristics
• Identifying new cross-breeds for the desired trait(s)
• Mapping genes in the Cannabis genome through sequencing and genetic analysis
• Assessing optimal soil and growth conditions for different seed/plant varieties

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

• Bioinformaticists
• Botanists
• C-Suite
• Chemists
• Data Analysts
• Geneticists
• Molecular Biologists
• Production Specialists
• PhDs / Postdoctoral Fellows
• Regulatory Personnel
• Research Scientists

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.