The high demand for quality dairy products in the U.S. requires significant investments in research and development (R&D) in the dairy processing industry. If your processing business experiments with pasteurization, tests manufacturing equipment, or improves packaging and fulfillment speeds, it may be eligible to claim the R&D Tax Credit. Federal and state credits can generate immense tax savings that can be reinvested in your company to enable additional growth and innovation.
Employee wages, raw materials and supplies, cloud computing expenses, 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 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 your potential state tax credit!