R&D Tax Credit for the Food Processing Industry

The R&D Tax Credit is often-overlooked and is intended to incentivize manufacturing and other companies with a dollar-for-dollar reduction of income tax owed.

Many companies in the food processing industry do not realize that they are eligible for the Research & Development Tax Credit. The R&D tax credit allows companies to realize tax savings, increase cash flow and stay competitive in the marketplace. Many of the qualifying activities are considered day-to-day operations in the food processing industry.

The benefits can be significant and are efficient to realize through our services. The Research Tax Credit can provide a hidden but immediate source of cash from prior years, plus a significant reduction to current and future years’ federal and state tax liabilities.

Typical Qualifying R&D Tax Credit Activities:

  • Developing new food product formulations.
  • Improving existing food formulations to improve taste, texture, or nutritional requirements.
  • Improving existing food formulations to achieve specified analytical requirements.
  • Producing prototype product samples for testing and validation of new recipe formulations.
  • Developing new food processes, including batching sequences, mixing times, and cooking temperatures and durations.
  • Developing new machinery and equipment for the production and testing of food products.
  • Developing recipe formulations for new food products and flavorings.
  • Improving existing production processes to improve efficiency.
  • Microbiological test procedures for the examination of food products
  • Conducting sensory evaluations of prototype samples.
  • Developing new packaging designs to provide enhanced functionality or increased product shelf life.

Our R&D Tax Credit practice consists of engineers, CPAs, and attorneys who have extensive experience conducting Research Tax Credit Studies at both the federal and state level. Our process begins with a free assessment to ensure that the company qualifies for the credit and would be able to utilize them. Each of our studies includes a site visit to help facilitate the study process. We also include audit support with all of our studies. This is a conservative federal and state incentive that was just made permanent by Congress as part of the 2015 PATH Act. Contact ETS for more information at 800-236-6519 or email here.