The Steady Growth of Cannabis Industries Paves the Way for Research-and-Development Tax Benefits

WEST PALM BEACH, Fla., March 31, 2021 (Newswire.com) - As the legalization of cannabis continues to proliferate across the country, the development and production of recreational and medicinal cannabis have dramatically increased. To ensure future growth, cannabis companies are now incorporating research-and-development activities into their day-to-day operations to increase yield, maintain quality standards and implement tracking systems to monitor their products. 

The R&D tax credit, a credit supported by state governments, is designed to incentivize businesses, like cannabis-related companies, to take innovative measures when developing or improving their products, processes or software. However, many companies either don't know these credits exist or don't believe they qualify for them. 

"National Tax Group assists companies of all sizes and industries in obtaining R&D credits by providing help throughout the entire tax process," said Lee Ferry, President of National Tax Group. "We want to ensure that businesses are actually utilizing these tax credits and are receiving the maximum amount that they're entitled to."

Many cannabis farms, pharmaceutical companies, and dispensaries are now faced with the challenge of keeping up with an expanding market and its demands. In order to do this, they must perform certain activities that would fall under the research-and-development qualifications, opening the door to these credits for them. 

Common examples of these activities include: enhancing the efficiency of the growing and harvesting process; developing new strains of cannabis through the use of genetic and cross-breeding techniques; developing new systems for indoor growth; performing testing to improve or speed up a harvest cycle; developing improved technologies for the delivery of cannabis-derived substances; creating new ways to prevent mold or plant loss; and developing unique software analytical tools for strand identification. 

For more information about National Tax Group and how it may be able to help with research-and-development tax credits, please call 561.257.3436. Be sure to also like National Tax Group on Facebook and on LinkedIn. 

About National Tax Group 

National Tax Group is a full-service group of tax professionals who provide high-quality tax solutions associated with 179D, 45L, cost segregation and research & development for businesses. Having worked in multiple areas of taxation, National Tax Group implements methodologies that are recognized by the government and has experience in complex tax incentive programs that have made the company a valuable partner to all of its clients. National Tax Group's ability to seamlessly collaborate with every business has made it a rapidly growing firm capable of handling complex challenges.

Source: National Tax Group