The craft beer and cider industries are continuing to grow and evolve, and technological advances have spurred changes in the types and quality of products. In addition, research and development (R&D) in canning and bottling methods to preserve freshness, taste, and shelf life have continued to revolutionize the industry. As the industry continues to innovate to keep pace with an increasingly crowded market, companies investing resources in developing the “next new thing” can recoup some of their costs by claiming the R&D Tax Credit.
Employee wages, raw materials and supplies, and third-party contractor costs associated with research and development 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 company or firm operates.
Example activities that qualify:
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!