Hard Seltzer R&D Tax Credits

Since entering the alcoholic beverages market in 2016, hard seltzers have changed the industry. According to Grand View Research, the hard seltzers industry was worth $8.95 billion in 2021 and can be expected to expand at the 22.9% rate from 2022 to 2030.

The first brand to enter the market was White Claw®, but soon many followed. As a result, the fierce competition is forcing companies to invest in research and development. So, if your business is conducting similar operations, you might benefit by claiming the R&D tax credit in the Hard Seltzers industry.

With the help of state and federal R&D tax credits, you can get a refund of up to 22% of your total QREs. Of course, the exact sum will depend on your company’s location, as different states have different R&D tax programs.

Qualifying Costs and Activities

Basically, your expenditures for third-party contractors, employee salaries, raw materials, and supplies are all considered QREs. You can also cover payrolls for software developers, QA and QC personnel, product managers, process engineers, formulators, consultants, C-Suite, brew masters, and brewers.

Moreover, firms in the sector are often unaware that many of their regular operations may qualify for a Hard Seltzers research and development tax credit. Some examples of qualifying activities include:

• Researching different flavor combinations and additives to attain desirable aroma and taste profiles;

• Using robots or automation to boost quality and productivity;

• Creating fresh fermentation or production techniques;

• Deciding on the best ways to scale up production processes;

• Experimenting with innovative packaging or canning techniques to enhance flavor and shelf life;

• Discovering innovative mobile or software applications to keep track of sales and inventory.

When You Need Expert Help

You can utilize the R&D Tax Calculator on our page to compute your potential gain. Moreover, our experts can help you claim the Hard Seltzers R&D tax credit without upfront costs.

FAQs

What kind of companies can apply?

Hard seltzer companies 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.