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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.

Want a quick estimate for your company?

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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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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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