Food & Beverage
Stats at a Glance
28.40%
Average of total food & beverage expenses that typically qualify
15,000
New food products are introduced each year
2 Years
Average time spent on R&D to bring a food or beverage to market
The food and beverage industries encompass many sub-subspecialties, but the overall goal is the same: to transform raw ingredients into consumables. Research and development (R&D) in these industries span a range of activities, from improving taste to removing unhealthy preservatives while maintaining shelf life. If your company is creating new products, or improving existing products or processes, there is a strong likelihood that your costs can be offset by the R&D Tax Credit. In addition to the federal credit, many states offer tax breaks. 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 industries have claimed significant R&D tax credits and received millions in additional capital to reinvest into their workforce, infrastructure, and continued innovation:
Co-Packing
Dairy Processing
Frozen Foods
Meat and Seafood Processing
Packaged Foods
Plant-Based Businesses
Example activities that qualify:
- Developing new recipes or formulations
- Assessing scaled-up production processes for new or improved products
- Improving packaging to enhance food safety and/or quality
- Analyzing a new product for various parameters (e.g. pH level, allergens, nutritional profile, shelflife, etc.)
- Experimenting with non-traditional ingredients
- Determining ways to streamline manufacturing, processing, and/or distribution
- Developing novel methods to improve the supply chain
- Creating software to support operations
- Assessing new products in test kitchens
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Biochemists
- C-Suite
- Food Designers / Scientists
- Nutritionists
- Operations Managers
- Quality Control Managers
- Software Engineers
- Test Chefs
Unsure of whether your food and beverage 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 in the food and beverage industries to claim R&D credits 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 (going back three years), offering additional financial benefits from tax refunds. If you cannot use the R&D credits immediately, the IRS allows taxpayers to carry credits forward up to 20 years.
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