Federal and State Research & Development Tax Credits
R&D Tax Credits can help many industries: breweries and wineries are no exception. While the early stages of new product development are generally not eligible, as the brewer or vintner grows the operation they often begin activities that can help generate significant tax savings. Automation equipment, quality improvements, scale-up activities, and driving to consistency are often the types of projects companies undertake as they grow.
The R&D Tax credit is one way the government rewards that investment – potentially by as much as 20% of the eligible expense. Example opportunities include adding canning and bottling lines, increasing output, and making sure that your wine or beer is meeting your flavor profile year-after-year, just to name a few.
Overlooked Tax Credits
With the economic environment continuing to present challenges to all types of companies, there are opportunities available to enhance your position going forward and enable you to emerge stronger than ever. Some Tax Credits you might have overlooked include:
Employee Retention Tax Credit
The Employee Retention Credit (ERC) is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees for qualified dates and employers.
Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who invest in American job seekers who have consistently faced barriers to employment.
Disaster Zone Tax Credit
Disaster Zone Tax Credits are available to employers who operate or operated businesses in Federally declared disaster zones. For example, businesses impacted by Hurricane Ida might be eligible.
How do I Claim these Tax Credits?
We can provide quick direction and a plan to allow you to capitalize on the opportunities in front of you. Even though the road to growth is often complex, it can be navigated efficiently and effectively with the right partner.
