R&D Tax Credits in the Food Processing Industry: A Recipe for Success

The food processing industry is a hotbed of innovation. From developing new recipes to improving production processes, the sector is continually pushing the boundaries of what's possible. Here are some examples of qualifying R&D activities in the food processing industry:

• Hiring food scientists and other knowledge workers: The expertise of these professionals is crucial in driving innovation in the food processing industry. Their work often involves developing new products and improving existing ones, which can qualify for R&D tax credits.
• Developing new machinery and equipment: The creation of state-of-the-art machinery and equipment to produce and test food products is a qualifying activity. This includes the development of new food processes, such as batching sequences, mixing times and cooking temperatures and durations.
• Improving existing production processes: Efforts to enhance efficiency in production processes can qualify for R&D tax credits. This includes activities aimed at reducing waste, improving yield and enhancing product quality.
• Developing new recipes and improving existing ones: The creation of new food products and flavorings is a qualifying activity. This also includes efforts to enhance the sensory qualities or nutritional requirements of existing food products.
• Creating innovative packaging: The development of new packaging designs to provide enhanced functionality or increase product shelf life is a qualifying activity. This includes the creation of sustainable packaging solutions.
• Developing software for tracking the production chain: The creation of software solutions to enhance traceability in the food processing industry is a qualifying activity. This includes software for inventory management, quality control and supply chain management.
• Enhancing food preservation: Efforts to improve the shelf life of food products through innovative preservation techniques can qualify for R&D tax credits.