Case Studies

R&D Tax Credits for a Craft Brewery

A Comprehensive Source Advisors Case Study

R&D Tax Credits for Breweries

When you think of R&D tax credits, breweries may not be the first thing that comes to mind. But dive into this case study to learn how Source Advisors uncovered a goldmine of tax benefits for a flourishing craft brewery engaged in unique R&D activities.

What Qualified as R&D?

In this case, the brewery’s R&D qualifications were unique but significant. They were engaged in crafting new gluten-free brews that went beyond the generic white lagers often available for gluten-free consumers. Their R&D activities involved thorough experimentation, ingredient selection, testing of new formulations, and intricate brewing processes aimed at producing distinctive flavors and aromas. Each of these actions contributed to the innovation of new products and satisfied the requirements for R&D tax credits.

The Source Advisors Solution

Source Advisors stepped in following a recommendation from the firm’s audit partner. A feasibility analysis was first conducted to give an estimate of the potential R&D tax credit benefits.

Detailed Analysis

We began by conducting a deep dive into the brewery's innovative processes, focusing particularly on their endeavors to create unique gluten-free brews. We evaluated the research, the experimentation involved, the range of ingredients tested, and the new brewing methodologies employed.

Financial Impact Assessment

Our team reviewed financial records, including but not limited to, costs related to labor, supplies, ingredients, and overheads. We then calculated the potential tax credits that the brewery could claim based on these expenditures, ensuring they wouldn't miss out on any benefits.

Compliance Checks

The identified R&D activities were cross-verified against federal and state tax laws to ensure they met the necessary legal criteria for claiming R&D tax credits. This not only included the qualifications of the activities themselves but also reviewed the supporting documentation and justifications to ensure they were compliant and audit-proof.

The Results Speak for Themselves

After the completion of the comprehensive study, Source Advisors identified R&D tax credit opportunities that resulted in:

$ 0
average in annual R&D tax credits

This substantial saving has enabled the company to reinvest in new brews, contributing to its growth from $10 million to $70 million in revenue.

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Don’t miss out on the valuable tax credits that could boost your businesses growth.

Contact Source Advisors today to explore how we can unlock tax advantages for your food or beverage company.

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