Home » Services » R&D Tax Credits » Industries » Agriculture Industry

Sowing Seeds of Innovation: R&D Tax Credits for Agribusiness

In the modern world, agriculture and technology are intertwined, creating a dynamic environment ripe for innovation. If you're in the agriculture industry, you're likely engaged in activities that could qualify for substantial federal and state tax benefits in the form of research and development (R&D) tax credits.

Agricultural Engineers in Plantation

Qualifying Agricultural Expenses for R&D Tax Credits

The first step to claiming R&D tax credits is understanding what expenses qualify. In the agriculture industry, these can include:

  1. Employee wages: W-2 wages for employees involved in R&D related activities
  2. Supplies: The cost of supplies consumed or used in the R&D process
  3. Contractor expenses: The cost of contractors used in support of R&D-related activities

Examples of Qualifying Activities in the Agriculture Industry

The agriculture industry is a broad field with a multitude of activities that can qualify for R&D tax credits. Here are some examples:

1. Developing new or improved:

  • Storage techniques to enhance product longevity
  • Conveyance systems to improve the efficiency of product transportation
  • Products or processes to maximize yield
  • Software to streamline agricultural operations
  • Irrigation technologies to optimize water usage
  • Techniques or equipment to minimize environmental impact
  • Methods of protecting crops from disease
  • Disease-resistant crops or livestock
  • Ways to prevent or control disease or insect pests
  • Gene transfer technologies, such as the DNA engineering of high-end bull semen
  • Automated processes to increase efficiency
  • Innovative products or processes that advance the industry
  • Livestock feeds or feeding techniques to improve animal health and growth
  • New breeding techniques to enhance livestock or crop quality
  • New cultivation techniques to improve crop yield

2. Testing:

  • New or improved planting or harvesting techniques
  • New or improved chemical additives or fertilizers
  • New feeds or feeding techniques to improve livestock health or growth
  • New soil blends, introducing new pH levels, mineral content or nutrient density
  • New techniques or products to prevent disease or pest damage

3. In addition:

  • Hybridizing or developing new strains of crops, plants or livestock
  • Implementing precision farming techniques to increase yield and/or production efficiency
  • Experimenting with new or different fertilizers
  • Evaluating and implementing new techniques to increase yields
  • Improving harvesting techniques
  • Implementing new equipment to improve harvest cycle times
  • Optimizing the treatment and management of farm wastes in an energy-efficient manner
  • Designing and implementing biosecurity practices via facility cleaning and disinfection

Getting an R&D Tax Credit Analysis to see if you qualify is the first step!

eBook: The Architect's Guide to R&D Tax Credits

This comprehensive e-book is designed to help you recognize which of your activities qualify for R&D tax credits! 

Webinars: R&D Tax Credits

Testimonials: Our valued clients

Andrew Krowne, CPA
Andrew Krowne, CPAKrowne Certified Public Accountants
Read More
“We work with Kimberly Lochridge and her expertise and work-product is top notch. They are our #1 resource for Cost Segregation Studies for all of our clients.”
Lewis B. Kevelson, CPA
Lewis B. Kevelson, CPARachlin LLP
Read More
“I wanted to thank you for the cost segregation and energy tax work you have done for several of the firm’s clients. The results have been very favorable and have resulted in significant tax benefits. You have a very talented team, and I look forward to working with you more in the future.”
Lou J. Fuoco, CPA
Lou J. Fuoco, CPAFuoco Group, LLP
Read More
I have worked with Engineered Tax Services for approximately two years and feel that they are the best in the business in terms of providing cost segregation and energy tax services.
Previous
Next

Case Studies R&D Tax Credit

Manufacturing

R&D Tax Credit Case Study for Specialty Manufacturer in Oregon

1 Year Tax Savings: $18,078 (Federal Only) Study Highlights   Wages $525,358 Supplies $26,953 Rental or lease of computers 27.5-Year Contract Research $11,760 Total Qualified ...
Manufacturing

R&D Tax Credit Case Study For Specialty Manufacturer in New York

1 Year Tax Savings: $18,078 (Federal Only) Study Highlights Wages $358,407 Supplies $26,953 Rental or lease of computers 27.5-Year Contract Research $14,227 Total Qualified Research ...
R&D Tax Credit

R&D Tax Credit Case Study for Software Developer in Texas

1 Year Tax Savings: $72,430 (Federal Only) Study Highlights Wages $1,342,919 Supplies $0 Rental or lease of computers $0 Contract Research $0 Total Qualified Research ...

Top Articles: R&D Tax Credit

IRS Guidance on I.R.C. § 41 Research Credit Refund Claims: What You Need to Know

Navigating the complexities of tax credits can be daunting, especially when it comes to the I.R.C. § 41 research credit. This credit, designed to incentivize ...
Read Full Article
aerospace field

R&D Tax Credits for the Aerospace Field

The global aerospace industry invests billions of dollars in research and development each year, driving groundbreaking advancements in technology and innovation. This massive investment underscores ...
Read Full Article
qualified research

What is Qualified Research?

When it comes to federal R&D tax credits, understanding what qualifies as research is crucial. Not all research activities meet the IRS criteria, and accurately ...
Read Full Article