R&D Tax Credit for Agriculture & Food Companies
Agriculture and food companies almost universally believe they don't qualify for the R&D Tax Credit — because they don't think of their work as "R&D." Any company experimenting with formulations, processes, or growing methods qualifies.
The Most Overlooked Industry
Agriculture and food production is one of the most consistently overlooked categories for the R&D Tax Credit. Companies in this space almost universally assume the credit is for pharmaceutical companies or tech startups.
But the IRS definition of qualifying R&D covers any activity that uses a systematic process to resolve technical uncertainty — and that describes a significant portion of what food manufacturers, agricultural producers, and food science teams do every day.
The key insight: You don't need a lab. If your team is testing formulations, evaluating growing methods, or iterating on processes to achieve a better outcome — that's qualifying R&D. The work doesn't need to be called "research" internally to qualify.
Qualifying Activities in Agriculture & Food
Roles That Typically Qualify
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Real-World Examples
New Food Formulation
A food manufacturer wants to reformulate a product to reduce sodium content while maintaining taste and texture. The food science team tests multiple ingredient combinations, evaluates different processing parameters, and iterates on the formulation through consumer panel testing and stability trials.
WHY IT QUALIFIES
Technical uncertainty (would the reformulation maintain acceptable taste and texture?), systematic process (multiple formulations tested and evaluated), technological in nature (food science, chemistry). Qualifying R&D.
Crop Yield Improvement
An agricultural company tests a new irrigation management protocol designed to improve yield in drought conditions. The team runs trials on multiple plots with different irrigation schedules, soil amendments, and planting densities, measuring yield outcomes across growing seasons.
WHY IT QUALIFIES
Technical uncertainty (would the new protocol improve yield?), systematic experimentation (controlled trials across multiple variables), technological in nature (agricultural science). Qualifying R&D.
Packaging Innovation
A produce company develops new modified atmosphere packaging to extend shelf life for a fresh product. The team tests different gas compositions, film materials, and sealing methods, measuring shelf life and quality retention across multiple iterations.
WHY IT QUALIFIES
Technical uncertainty (which packaging configuration would achieve the target shelf life?), systematic process (multiple configurations tested), technological in nature (materials science, food science). Qualifying R&D.
Other Industries
Find Out What Your Company Is Owed
Free assessment. No fee if you don't qualify. Most agriculture and food companies are surprised by what they find.