HomeR&D CreditIndustries › Food / Bev / Agriculture

R&D Tax Credit for Food / Bev / Agriculture

Recipes & formulations, shelf-life and packaging; crop genetics, cultivation, fermentation & preservation testing.

Estimate your credit →

How the R&D credit applies to Food / Bev / Agriculture

Food, beverage, and ag companies qualify through formulation science and process development: reformulating recipes, extending shelf life, improving packaging for preservation, and developing fermentation or cultivation methods.

Work to hit a nutritional target, remove an allergen, or stabilize a product without preservatives typically involves real technical uncertainty and iterative testing.

Work that often qualifies in Food / Bev / Agriculture

Typical qualifying roles

Food Scientist R&D Chef/Formulator Process Engineer Packaging Engineer Quality/Food Safety Scientist Agronomist Fermentation Scientist

Wages for time these roles spend on qualified research may count toward your credit.

Example credit scenario

Illustrative first-year ASC calculation

Qualified W-2 wages$280,000
Supplies$60,000
Cloud & computer rental$5,000
Contractor research spend$30,000
↳ 65% statutory haircut (IRC §41(b)(3))$19,500
Total QRE$364,500
Illustrative first-year ASC credit (6%) ≈ $21,870

Illustrative example using sample figures. Your actual credit depends on your facts; see Form 6765 and consult a tax professional.

The four-part test — applied to Food / Bev / Agriculture

The IRS requires qualifying research to satisfy four tests. Here's how each typically maps in this industry:

Permitted purpose

The activity aims at extending product shelf life without artificial preservatives.

Technological in nature

The work relies on food science and microbiology.

Elimination of uncertainty

Unknown which formulation will remain stable.

Process of experimentation

Teams use iterative test batches and shelf-life trials.

Get your free R&D tax credit assessment

Find out how much your Food / Bev / Agriculture company could claim — at no cost, no commitment.

📅 Book Your Free Discovery Call
Book Your Free Discovery Call