Food and beverage manufacturers are often unaware of their eligibility for the R&D tax credit. However, activities such as food science initiatives, development of novel recipes and flavors, and even packaging and food safety improvements may qualify for the R&D tax credit.
Recent shifts in health and lifestyle trends have further spurred innovation within this sector, leading to the creation of inventive new products. The development of manufacturing processes, adherence to regulatory requirements, and the optimization of transportation logistics are all vital functions in this industry. These areas can lead to the design of equipment and processes that may qualify for the R&D credit.
Eligibility for this credit isn’t restricted to large multinational food manufacturers alone; even smaller companies with a limited range of products or beverages can benefit. The R&D tax credit thus stands as an instrumental incentive for fostering innovation in the food and beverage industry.
For nearly a decade, this company has realized R&D credits averaging $65,000 annually.
The company’s ability to grow, in large part, is driven by sales of its new products.
This $70M brewing company produces over 275,000 barrels of beer annually and currently sells in over 42 U.S. states plus Washington D.C.
The R&D tax credit can help a wide variety of businesses offset and reduce their income tax liability, in addition to providing many other benefits. Our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can then help drive overall growth.