To qualify, activities must:
Qualified Research Expenses (QREs)
The IRS allows several categories of Qualified Research Expenses (QREs):
Expense Type
Examples in Row Crops
Eligibility Notes
Wages
Agronomists, farm managers, trial coordinators
Direct, supervisory, and support roles qualify
Supplies
Seed, fertilizer, prototypes, field sensors
Must be consumed in the research process
Software / Cloud
Data analysis tools, yield mapping platforms
Eligible if used for qualified research
Contract Research
University or lab field trials
65% of eligible costs may be claimed
Compliance and Documentation
§174 Update
Following the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025, §174 now allows immediate expensing of domestic research expenses for tax years beginning on or after January 1, 2025. Taxpayers may also elect optional amortization under new §174A. Foreign research expenses must still be amortized over 15 years. This is separate from the §41 credit but impacts overall tax planning.
Documentation requirements remain unchanged. Maintain clear records of:
Frequently Asked Questions
Do farmers qualify for the R&D Tax Credit?
Yes. Farmers and agribusinesses can qualify if they engage in systematic testing or trials that resolve technical uncertainty, not routine operations.
What expenses can be claimed?
Wages, supplies, cloud software, and a portion of contract research directly related to qualified R&D activities.
Which crops are eligible?
Common row crops such as corn, wheat, soybeans, and cotton can qualify when growers test new methods or technologies.
What activities do not qualify?
Routine farming, post‑discovery production, and non‑technical tasks such as sales or general management.
How much can row crop farmers typically save?
Savings vary by farm size and scope of activities. Industry reports suggest many row crop operations see $50,000 to $200,000 in annual credits when research activities are properly documented.
How should farmers document research?
Maintain side‑by‑side trial data, soil and yield records, equipment logs, and employee time allocations to support claims under IRS audit guidelines.
Next Steps
Estimate Credits
Use our calculator to estimate your potential federal and state benefits
Speak to Expert
Schedule a consultation to structure your row crop research activities
If you are innovating in agriculture, you may already be doing R&D. Let's make sure you are rewarded for it.
Contact Strike Tax Advisory
Ready to maximize your R&D tax credits? Get in touch with our team of experts.
Thank You!
Your information has been successfully sent!
Want to speed up the qualification process?
Book Your consultation NowOops! Something went wrong while submitting the form.
Alcoholic Beverages
Ready to Maximize Your Credits?
With just a little info, our Strike Experts can help you start your R&D tax credit journey.
Oops! Something went wrong while submitting the form.
Although winemaking dates back thousands of years, there are still significant innovations being made in the industry. Research and development (R&D) into new techniques for harvesting, fermentation, storage, blending, and many other activities can qualify for significant tax savings by claiming the R&D Tax Credit. Ancillary businesses that support the winemaking industry have also been applying novel technologies to new distillation techniques, fertilizers, and fermentation solutions. If you are a winery or your technology supports the winemaking industry, some of your costs can be recouped through federal and state tax credits and refunds.
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.
- Designing innovative wine caves or fermentation tanks with enhanced functionality
- Evaluating innovative filtration techniques
- Creating and testing new wine blends/formulations to achieve flavor/aroma profiles
- Developing software to improve efficiency and product tracking
- Assessing fertilizer and optimal growth/harvesting conditions for a new varietal
- Evaluating new bottling and/or corking techniques
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Agronomists
- Blenders
- C-Suite
- Consultants
- Enologists / Winemakers
- Harvest Enologists
- Laboratory Technicians
- Viticulturists
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.
Want a quick estimate for your company?
Calculate My CreditsGot questions?
Schedule a quick call with an R&D expert.
We’ll walk you through our process and take the time to understand yours to make sure you get the most back.
Schedule a Meeting
Related Sub-Industries
Does your state qualify for the State R&D Tax Credit?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!
How much could I get back for
Wineries / Vineyards
?
Great question! Try out our R&D Tax Credit Calculator to see the value of your R&D tax credit reward.
Oops! Something went wrong while submitting the form.
