Using a white-label manufacturing company is a smart and efﬁcient way for new cannabinoid and hemp product companies to rapidly enter an increasingly competitive market. These companies employ experienced formulators to determine the best cannabinoid combinations for the desired effect, and research additional ingredients to round out the product. The creation of new recipes requires signiﬁcant investments in research and development (R&D) on the part of white-label manufacturing companies. Fortunately, some of these costs can be recouped 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.