Claim R&D Tax Credits for Your
Cannabis & CBD Research

Refunds are available for companies performing research within the Cannabis & CBD Industry. The research credit provides dollar-for-dollar cash savings each year for activities focused on developing new or improved products and processes. These benefits can provide much-needed funding to hire additional staff, expand R&D programs, invest in production facilities, and support growth initiatives.

Examples of Qualifying Cannabis & CBD R&D Work

Many cannabis and CBD businesses are unaware that their design and development work can generate substantial research credits. Examples of R&D activities within the industry and potentially qualifying job roles are outlined below.

Designing, manufacturing, innovating, and automating cultivation, curing, extraction, and distillation equipment

Experimenting with alternative growing methods, strain development, lighting, and packaging techniques

Optimizing crop yield through energy efficiency, climate-control, lighting, and air sanitization systems

Conducting research and testing related to medical or therapeutic uses of cannabis-based products

Developing software, hardware, or mobile applications for seed-to-sale technology, inventory management, cash handling, and compliance

Alternative Minimum Tax (AMT) Offset

For tax years beginning after December 31, 2015, eligible small businesses with $50 million or less in gross receipts may claim the research credit against their alternative minimum tax (AMT) liability.

Eligible Job Roles for R&D Credits

Agronomist

Botanist

Chemist

Engineer

Grow Consultant

Horticulturist

Master Grower

Up to $500,000 in Payroll Tax

Qualified start-ups can apply up to $500,000 of the research credit against payroll taxes. Treasury regulations now allow a wider range of companies, from start-ups to publicly traded businesses, to fully take advantage of this credit.

Quickly Discover Your Potential Savings

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