Many companies in the food manufacturing and processing industries are unaware that the government offers generous research and development (R&D) incentive programs. Even those that are aware often fail to capture the full extent of R&D tax credits to which they are entitled. For example, many companies may be capturing relevant expenses from their R&D cost centers, but not all qualifying R&D activities take place in traditional R&D departments. In many companies, prototyping, process development, and testing happen in the plant or on the shop floor, and thus may be overlooked for purposes of the R&D tax credit. If you think you have to have a PhD and a state-of-the-art laboratory to be conducting qualified activities as defined by the Internal Revenue Code, think again.
Scientists, nutritionists, dietitians, technologists, and process engineers that work for food manufacturing and processing companies have the responsibility and challenge of developing a wide variety of food, beverage, and consumer products and processes to satisfy continuously evolving customer expectations and preferences. These efforts to create better tasting products or more nutritious products typically involve extensive experimentation and testing of new formulations, recipes, process parameters, and packaging methods. Has your company introduced product line extensions recently? Have you modified product formulations and/or manufacturing processes to create food products that taste better, are more nutritious, have better consistency, or have longer shelf lives? If the answer is yes, then there is a strong chance that your company could benefit from an R&D Tax Credit study. Let alliantgroup’s food science experts help you claim the credits that you deserve.