The packaging industry is highly competitive, and companies invest substantial time and resources in research and development (R&D). If your company designs environmentally-friendly packaging, implements processes that reduce costs, improves shipping efficiencies, or any number of innovations, it may be eligible to claim the R&D Tax Credit. Federal and state credits can help businesses maximize tax savings to free up needed capital to reinvest in further 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 what your potential state tax credit!