The frozen food industry faces steep competition in the U.S., and companies are always searching for the next new thing. Healthier, all-natural, and organic frozen meals abound in the supermarket’s freezer section, and plant-based protein entrees are gaining in popularity. All of these advancements require investments in research and development (R&D). If your company improves frozen food and novelties, or develops innovative technology to drive consumer engagement for its products, it may be eligible to claim the R&D Tax Credit. Companies can recoup costs associated with innovation by claiming federal and state tax incentives.
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!