The food and consumer packaging manufacturing industry in the U.S. is projected to grow at a compounded annual growth rate (CAGR) of 3.5% from 2020 to 2025. Innovations in this industry must keep pace with consumer preferences, advances in flexible package technology, and environmental standards. Investments in research and development (R&D) are necessary for companies to remain competitive, and some of these costs can be recouped through the R&D Tax Credit.
Employee wages, raw materials and supplies, cloud computing, 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 (or third-party contractor) 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 what your potential state tax credit!