R&D Tax Credits in the Food and Beverage Industry
Food and beverage is one of the sectors that frequently misses out on claiming relevant R&D tax credits because the vast majority of the industry’s top manufacturers just do not realize that they are eligible for the credit. Keep in mind that research and development are what the credit rewards. There are numerous successful companies in the food and beverage sector that have excelled in bringing high-quality items to market as a consequence of good R&D, so they are not exclusive to certain industries.
Consider all the different qualified research and development activities that the top food and beverage companies, both large and small, carry out. Research and development in the food industry includes novel taste development, research into the science of flavor, and recipe development. The R&D tax credit will normally be applicable to the actions carried out to meet these objectives.
To keep up with current health and lifestyle trends, several businesses create new and improved packaging or completely new food products. Even the creation of novel manufacturing techniques to get the food ready for market can be eligible for the credit.
Research Activities for Food and Beverage
- Development of novel beverage formulas
- Production and brewing of new drinks or beverages
- Processes for fermentation are improved
- Developing and improvement of novel tastes, especially sweeteners
- Design and creation of fresh or enhanced packaging ideas
- Equipment design and development for production or logistics
- Food safety testing and experimenting
- Prolonging the shelf life of already-purchased goods Enhancing the flavor and texture of food products
- Examining samples to determine their microbial content
- Inspecting products for nutritional information, including sodium content
- Producing fertilizers or chemicals for use in food production
- Process optimization to reduce or remove potential contamination
- Automation of labor-intensive processes
- Programming for usage in manufacturing systems
To know more about R&D Tax Credit and evaluate if you are eligible for the credit contact Funding Lobby today!