The agriculture industry is highly competitive and requires significant investments in research and development (R&D). If your farm deploys precision farming techniques, tests soils for crop health and expansion, or implements improvements in time-to-market, it may be eligible for significant tax savings. Farms that take advantage of the R&D Tax Credit at the federal and state levels can recoup a portion of their R&D expenditures, and reinvest much-needed capital into the business.
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.
Examples of qualifying activities:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!