Packaging has long been a challenge for companies who want to align their brand with “environmentally friendly”. With the passing of the 2018 Farm Bill, the hemp bioplastics industry has emerged as an alternative to fossil fuel-based plastics, which can take up to 1,000 years to decompose compared to six months for hemp-based materials. With a global focus on reducing plastic consumption, waste, and pollution, there is a push to develop hemp-based packaging materials, novel composites, and paper products. The research and development (R&D) involved in this industry is substantial. If your company invests in innovation, it could be eligible for signiﬁcant tax refunds and credits by claiming 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.