R&D Tax Credit Incentives for the Brewing 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.
At some point between the grain to bottle you are performing research and development and this credit can be very lucrative, especially to the craft brewery industry because of the inherent uncertainty involved in entire brewing process.
Many companies in the brewing 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 brewing industry. The benefits can be significant and are efficient to realize through our services. The R&D 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 Brewery Innovation R&D Activities Include:
- Developing new or improved product formulations
- Brewing or bottling equipment development
- Hopping techniques or hop varieties development
- Testing of product ingredient mixtures for desired flavor
- Developing yeast strains or fermentation processes
- Bottling or canning processes development
- Developing new or improved keg filling or treatment techniques
- Testing product designs to ensure shelf life
- Developing new or improved ingredient processing techniques
- New or improved water recycling processes development
- Developing new or improved filtration methodologies
- Ingredient mixing methodologies development
- Developing new or improved preservative chemicals
Our Research Tax Credit practice consists of engineers, CPAs, and attorneys who have extensive experience conducting R&D 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.