Since it has entered the global market, the medical marijuana industry has continued to experience rapid growth. As state laws begin to adjust based on the legalization of both medical and recreational marijuana, companies are now finding themselves in unique positions to start exploring research and development for marijuana products and systems.
One of the main research and development categories that medical marijuana companies have explored are indoor growth systems when it comes to harvesting marijuana plants. These advanced growing systems help companies and their harvesters maximize the outcomes of their crops and keep working conditions easier and more reliable. If you’re a medical marijuana company that has invested time and research into developing these systems, you may be eligible for lucrative R&D tax credits.
What Types Of Indoor Growth Systems Would Apply For R&D?
The creation of indoor growth systems has given companies more space to grow, a way to yield more plants, and the opportunity to gain more revenue for their business.
But what exactly would qualify for R&D tax credits when it comes to developing these growth systems? Most of the time, because these systems are improving the quality, function, and reliability of a process, a good amount of these systems will fall into the category of research and development.
In order to claim R&D tax credits, the development of these products and systems must:
- Improve the quality, function, and reliability of a process or product
- Identifies and removes any uncertainty about a product or process
- Involves stimulation, logical trial and error, assessing alternatives, and refining hypotheses
- Research done relies solely on physical sciences, biological sciences, computer sciences, or engineering
Some Examples Of These Grow Systems Include:
- Marijuana Light Deprivation / Blackout Shade Systems
- Multi-Tiered Aluminum Benches
- Irrigation & Watering Systems for Marijuana Greenhouses
- LED Marijuana Grow Lights
- Gutter Connected Poly Greenhouses
- Vertical Growing Systems
- Hydroponic Systems & Accessories
- Evaporative Cooling Systems
What Are Your First Steps To Claiming R&D Credits?
Getting together all the correct documentation and knowing what would qualify your company for R&D credits requires the help of tex specialists. At National Tax Group, our experienced team can itemize and capture credits for your company. Call us at (561) 257-3436 to schedule your free initial assessment so you can determine your eligibility and start your R&D process with us now.