Meat & Seafood Processing R&D Tax Credits

Due to the world’s expanding population, the food industry is facing a huge increase in demand. For this reason, it is vital to develop better food production methods while maintaining product quality. That’s why meat and seafood processing companies heavily rely on R&D to help process cattle and aquaculture. Aside from bettering the production process, such businesses often provide equipment, technology, and space for meatpacking as well.

However, meat and seafood processing plants are often not aware they can take advantage of certain state and federal tax credits. For example, if your company increases production effectiveness, introduces novel food handling methods, or develops and constructs new equipment, you might be able to claim the Meat & Seafood Processing research and development tax credit. The credit can equal up to 22% of your total QREs, but it mostly depends on the state where you choose to do R&D activities.

Qualifying Costs and Activities

You can use the Meat & Seafood Processing R&D tax credit to cover positions like process and QA engineers, packaging technicians, electrical and mechanical engineers, food safety managers, C-suite, and meat or seafood processors. To apply for this incentive, you must also have qualifying research expenses like paying for third-party contractors, raw materials, and supplies.

Moreover, qualifying activities must include one of the following:

• Creating new fish deboning and packing methods;

• Enhancing a meat tracking system to watch out for disease outbreaks;

• Developing machinery to improve safety and efficiency on the food processing floor;

• Upgrading equipment sanitation procedures to eliminate microorganisms on surfaces;

• Testing novel packaging techniques to extend shelf life and enhance meat quality;

• Exploring and implementing environmental technology for native wildlife conservation.

In case you need help calculating the R&D tax credit in the Meat & Seafood Processing industry, don’t hesitate to contact us. Our experts will give you a free estimate and help you apply without any upfront costs.

FAQs

What kind of companies can apply?

Meat and seafood processing 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, purchase orders, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.