The R&D tax credit in the State of Texas offers incentives for businesses in a wide variety of industries, one of which is farming. Agriculture continues to evolve; the need for innovative solutions to overcome farming challenges is high. Without the essential research and development for these innovations the Texas agricultural industry will not be able to remain competitive. Thankfully, the R&D tax credit is available for companies within this industry, to encourage further investment in innovations thanks to the reduced tax liabilities.
Overcoming Hurdles in Agriculture
There are many hurdles that stand in the way of growth in agriculture. It is the responsibility of research and development teams to overcome such problems as disease control, irrigation, efficiency in harvesting, soil improvement and new product development. Many agricultural businesses will already be investing in these areas, yet they still fail to claim the R&D tax credit because they are unaware that they qualify. Other businesses fail to put their ideas and test their designs or create prototypes because they don’t have the capital to put into the research and development processes. This is why it’s essential to evaluate your expenses and see if you are eligible for the R&D tax credit to help you improve your business, boost the economy and increase productivity.
What Might Qualify for Research and Development Tax Credits?
There are several activities found in the farming and agriculture industry that may qualify for the tax credit, these include:
- Improving or the creation of new processes to reduce spoilage
- New or improved packaging designed to increase the shelf life of the products
- Experimenting with brand new pesticides designed to tackle animal diseases or plant disease and infestations
- Improving or introducing new processes to increase the yield of the harvest
- New development in products via cross breeding
- Developing new products that have a higher nutritional value
- New or improved feeding processes for livestock
- Designing or developing new irrigation systems and new fertilizers
- Improving transportation methods through experimentation to reduce the problem of spoilage
Claiming Your Slice of the R&D Tax Credit
The claims process often appears to be daunting and intimidating, especially to new or small businesses in the agriculture industry. Making a claim can be difficult for anyone without the access to chartered accountants. At Texas R&D Tax Credit Solutions we have the experts and R&D specialists on hand to guide you through the process, helping you with the planning and preparation and helping you to find out if you qualify for the tax credit.
A successful claim requires accurate collection of data and documents that support your accounts relating to research and development within your business. Having the trail of evidence in place will benefit you greatly and help you to receive the correct amount of tax credit that you can then use to put back into the business and continue experimenting and innovating.