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.

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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