Hemp farmers are discovering new and innovative methods to improve yield and quality while reducing costs. Industrial hemp is a multi-billion dollar crop, and its cultivation requires intense research into the ideal growth, fertilization, and harvesting conditions. Investments in research and development (R&D) aimed at improving the planting, cultivation, harvesting, drying, and curing of industrial hemp could be eligible for signiﬁcant tax savings through 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.