Our CA based client is a seafood processor catering to Asian cuisine & co-packing for a few large retail chains. They have the challenge of keeping the products they process cold enough for food safety requirements while not freezing the product solid as to allow for handling & processing.
Of their 100 employees, a small subset of them are involved in trial and error tests aimed at streamlining their processes and are considered “qualified expenses” for the R&D credit. Considerable money was also spent on consumed materials, samples & outside contractors for these process and product improvements.
Bottom line was a $150K federal tax credit & $48K CA credit for the “Research & Development” activities & expenses incurred in the tax year.
Are you working through process changes and variables with natural ingredients? Contact us & see if the R&D tax credit or other services we offer might get you out of the cold.
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The provided examples are for illustrative and informational purposes only. Results may vary depending on individual circumstances, and Manufacture Results LLC cannot guarantee the same outcome for others. Be sure to consult your own legal and tax professionals when making decisions for your specific situation.