Stats at a Glance
Average of total alcoholic beverage expenses that typically qualify
Number of breweries and wineries in the United States
The amount startups can offset payroll taxes per year
Alcoholic beverage companies are constantly innovating to keep pace with changing demands in a highly-competitive market. The process of taking a project from concept, to formulation development (the recipe), and scale-up batching to full production requires significant investment in numerous R&D activities. Even if your company is not focused on new products, but is implementing automation or evaluating new packaging options, these activities are considered R&D and can be claimed as qualified research expenses (QREs) toward the R&D Tax Credit. In addition to the federal credit, many states offer tax breaks for R&D investment. Pre-revenue companies and start-ups with less than five years of revenue can use the federal R&D tax credits to offset future payroll taxes.
The following alcoholic beverage industries have claimed significant R&D tax credits, receiving much-needed capital to reinvest in their workforce, infrastructure, and continued innovation:
Example activities that qualify:
- Creating new product formulations to achieve specific flavor and aroma profiles
- Developing custom manufacturing equipment or processes
- Improving fermentation and/or distillation processes to improve taste or shelf life
- Implementing automation within the production, bottling, or packaging process
- Creating new filtration, purification, and distillation methodologies
- Producing prototype batches or test samples
- Implementing novel technology into wine caves and storage structures
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Cellar Masters
- Manufacturing Managers
- Master Brewers / Blenders
- Research & Development Managers
Unsure of whether your alcoholic beverage initiatives or product development activities qualify? The innovations your company has been working on may be eligible for significant tax breaks. STRIKE Advisory, LLC employs tax experts with years of experience in R&D Tax Credits. At STRIKE, we work on a success-based fee structure enabling businesses to claim R&D credits/refunds without any out-of-pocket costs. We offer complete audit protection and a money-back guarantee. Use our R&D Tax Calculator to estimate your potential benefit, and partner with STRIKE to claim your tax credits with no up-front costs. Contact one of our experts today.
The R&D Tax Credit was created to incentivize companies across multiple industries to keep high-tech jobs in the United States. Companies can claim employee wages, supplies & raw materials, computer rental costs, and third-party contractor expenditures incurred throughout the R&D process. Current law permits companies to amend prior year tax returns (typically going back three years), offering additional financial benefits from tax refunds. If you cannot use the R&D credits immediately, qualified small businesses can offset future payroll tax liabilities or credits can carry forward up to 20 years to reduce income tax.