Hemp Farming

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.

Example activities that qualify:

• Experimenting with harvesting times, light exposure, or other variables to influence cannabinoid concentration
• Optimizing fertilizer, nutrients, temperature, and irrigation to maximize yields
• Investigating alternative pest-control measures to reduce pesticide contamination
• Designing new or improved greenhouses with enhanced functionality
• Assessing ideal levels of micro and macronutrients
• Integrating solar power or alternative energy sources into farms/greenhouses

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

• Agronomists
• Analytical Chemists
• Botanists
• Biologists
• C-Suite
• Cultivation Manager
• Farmers
• Greenhouse Engineers
• Harvesters
• Master Grower
• Production Specialist
• Structural Engineers

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.