Industry: Agriculture & Food Production
Company Size: 38 Employees
Annual Revenue: $9M
R&D Tax Credit Savings: $200,000
Challenge in Food Production
A food processing company specializing in natural and organic packaged foods was focused on developing new preservation methods, enhancing shelf life, and improving product texture and flavor without artificial additives. Their R&D team conducted testing on natural preservatives, optimized packaging solutions, and refined production techniques to maintain quality and freshness. However, they were unaware that these research efforts qualified for R&D tax credits.
Despite making significant investments in food science and production process improvements, they had not been tracking these efforts for tax credit eligibility.
Our Approach
1). Food Science R&D Evaluation: Identified qualifying activities such as natural preservative formulation, production efficiency improvements, and packaging innovation testing.
2). Expense Documentation: Captured wages for food scientists, process engineers, and quality control specialists, along with costs for test batches and laboratory analysis.
3). Audit-Ready Study: Developed an IRS-compliant report detailing their experimentation with ingredients, texture enhancement techniques, and extended shelf-life testing.
4). Future R&D Strategy: Established a tracking system to document ongoing product development and maximize future tax credit claims.
Outcome
- Secured a $200,000 R&D tax credit, reducing tax burdens and increasing available capital.
- Allowed reinvestment in new organic product lines and sustainable packaging innovations.
- Created a structured system for tracking ongoing R&D efforts, ensuring long-term tax credit optimization.
Unlock Your R&D Tax Credits Today
At Credits Granted, we help food production and processing businesses maximize their R&D tax savings with full IRS compliance.
Want to see if your company qualifies? Schedule a Free Consultation today.
