The landscapes of the food and pharmaceutical industries have changed drastically over the past several decades.  Much of these changes have occurred thanks to leaps in technology, including:  how we are able to process and store food; automation in mass production and clean rooms; and new pharmaceutical developments.  All of these advances have created challenges for regulatory personnel to keep up with and, therefore, more rules and guidelines that must be followed to safely bring products to market.  

More regulations generally means more time and expense toward following the new rules. The silver lining is that all of the expenses that went into the original innovation can help reduce taxes.  

The following are some examples of potentially qualifying R&D activities:

  • Experimentation with New Methodology to Improve Production Yields;
  • Genetic Research & Modification;
  • Inclusion of Novel Ingredients;
  • Shelf Life Testing / Sensory Testing;
  • Pilot / Test Batches; and
  • Integrating Wastewater Management & Recycling Systems.

Industry Case Studies

Food & Beverage Manufacturer


Revenue: $67mm

Credit: $72k

Qualifying Activities: Recipe/Formula Development, Manufacturing Scale-Up Design & Development, Quality Program

Qualifying Personnel: R&D Team, Food Scientists, Lab Personnel, Production Team

Supplement Manufacturer


Revenue: $22mm

Credit: $55k

Qualifying Activities: Therapeutic Efficacy Research, Formulation Design & Testing, Automation Design & Testing 

Qualifying Personnel: Chief Research Officer, Lab Personnel, Plant Supervisor

Craft Brewery


Revenue: $6mm

Credit: $27k

Qualifying Activities: New Brew Development, Automation Design

Qualifying Personnel: Brewmaster, Quality Lab Personnel, Maintenance Supervisor