The Research and Development Tax Credit for the Agriculture and Farming Industry

By June 22, 2020 June 26th, 2020 R&D Tax Credits

Many of the activities related to the agriculture and farming industry qualify for the Research and Development Tax Credit. Yet, business owners are unaware of this strategic financial planning tool given that, historically, the credit has been claimed mostly by manufacturing, pharmaceutical, and software companies. Agricultural and farming companies continuously conduct qualified research activities (QRAs) and spend on qualified research expenses (QREs) such as identifying, testing, and implementing new or improved agricultural and farming innovative solutions, which makes them a strong candidate for the Research and Development Tax Credit.


Given the nature of the agricultural and farming industry, businesses have the opportunity to constantly experiment with new products and processes. These opportunities present themselves on a daily basis, such as pest control, product development, cost-efficient harvesting, water-saving techniques, and specialty soil development. Other activities that can also qualify as QRAs are pesticide testing and evaluation, irrigation efficiency, and lighting improvement techniques.


Below you’ll find other farming and agricultural activities that will fulfill the IRS Four-Part Test and qualify for the Research and Development Tax Credit:

  • Packaging development
  • Reduce waste processes
  • Spoilage elimination processes
  • Increase in shelf life techniques
  • Feeding, breeding and crossbreeding techniques
  • Improved transportation methods

Does your company perform any of these activities? Book a free R&D consultation! To learn more about the Research and Development Tax Credit visit the Indago Tax Credits website or email us at [email protected]