The spirits industry is growing increasingly competitive, and is evolving to meet new consumer preferences for exotic flavors, botanicals, and responsibly-sourced ingredients. The industry is rooted in tradition, but is also innovating in terms of processes, product, and the implementation of new technology. Companies investing in research and development (R&D) to create or innovate can offset their tax liability 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:
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!