Ready-to-drink (RTD) cocktails emerged as the fastest-growing segment of the alcohol industry in 2019, with a market share of nearly $650 million. Today’s consumers are health and wellness conscious, and companies are focused on premiumization, sustainability, and using natural ingredients. As a result, new wine, spirit, and malt-based canned cocktails are hitting the market on a (seemingly) daily basis. To produce a drink that resonates with consumers, significant research and development (R&D) is invested in RTD product lines, including innovations in ingredient sourcing, manufacturing, and canning/bottling processes. Some of these costs can be recouped 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:
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Use our R&D Tax Calculator to estimate your potential benefit, and partner with Strike to claim your tax benefits with no up-front costs. Contact one of our experts today.
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!