Craft Brewery R&D Tax Credits

In a market crowded with beer and ciders, craft breweries must constantly put out new and better products to compete. Aside from that, demands for better taste, longer shelf life, and preserved freshness are slowly increasing. To keep up, breweries put a big emphasis on research and development. It’s no wonder many are eager to claim the Craft Breweries research and development tax credit.

Craft Breweries R&D Tax Credit Explained

If your brewery is researching innovative bottling and canning methods or developing eco-friendly components for its products, you may qualify for the Craft Breweries R&D tax credit. In case you do, you could receive a return of up to 22% of your qualified research expenses.

Qualifying Costs and Activities

QREs include employee wages, cloud computer rental, supplies, raw materials, and costs of third-party contractors. With the incentive that refunds a part of these expenses, you can cover various job titles, including chemists, engineers, product and operations managers, laboratory technicians, packaging engineers, master brewers, C-suite, process improvement experts, and QA/QC personnel.

The R&D tax credit in the Craft Breweries industry is available to all firms that regularly perform certain qualifying activities. Examples of those include:

• Developing new and seasonal brews;

• Designing, implementing, and creating brewing equipment;

• Creating and testing new recipes and fermentation techniques;

• Researching and implementing eco-friendly components;

• Improving canning and bottling processes;

• Evaluating prototypes;

• Adding automation for higher quality and better consistency.

When You Need Expert Help

You can contact our team of R&D Tax Credit professionals to calculate your tax credit amount. Furthermore, our experts help you claim the Craft Breweries R&D tax credit without any upfront costs.

FAQs

What kind of companies can apply?

Craft breweries that conduct qualifying research activities.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, lab results, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.