Even though R&D tax credits are often associated with tech companies and Silicon Valley, don’t underestimate the benefits also available for restaurants, wineries, and breweries. Significant tax savings are available, and many small and medium businesses are missing out because they don’t understand how the R&D tax credit works.
R&D in the Food and Beverage Industry
More than ever, food and beverage companies are focusing on research and development to meet the demand of a growing population. Businesses, producers, and manufacturers are looking for ways to keep up with current industry trends, while also providing more options.
Examples of changes in the food and beverage industry in recent years include:
- Gluten-free options
- Reducing carb count
- Less sugar
- Lower sodium
- Adding vegetables to products
- Extending shelf life
- Reduced impact on the environment
- Designing new packaging
- Improved hopping, distillation, or fermentation techniques
- New and/or improved technology
Since the food and beverage industry is required to follow strict regulations, the cost of research and development can be expensive. The R&D tax credit is designed to offset some of these costs.
R&D Tax Credits for Food Services
R&D tax credits are offered to companies developing products and processes to increase efficiency, reliability, function, performance, or quality. Often, these applications are software-based, but the tax credits are available for any efforts aimed to advance U.S. companies.
For example, businesses in the food and beverage industry have costs associated with the development of new products, packaging designs, and testing these innovations. As these research and development efforts are happening, businesses can leverage tax credits as an incentive to continue with innovations and new manufacturing processes. These tax credits are available for a variety of businesses within the food and drink industry including restaurants, wineries, and breweries.
Engineers, scientists, and other specialists are involved in R&D in the food and beverage industry. Whether you are testing prototype samples or developing new production specifications, these costs can be classified as research and development – giving you access to valuable tax credits.
Leveraging Tax Credits for Your Business
Are you taking advantage of available tax credits to help your business grow? If you need personalized recommendations to use these R&D tax credits, then ReFOCUSed Business Consulting is here to help. We understand the tax laws and can assist in designing a plan to support your financial strategy going forward. Contact us right away to schedule a consultation so we can discuss the possibilities for your business.