Dairy Farming
Research and Development Tax Incentives for the Dairy Farming Industry
Many agricultural businesses, such as dairy farms, are unaware that the government offers generous research and development (R&D) incentive programs, or they may believe that such programs do not apply to agricultural companies. Even those that are aware often fail to capture the full extent of R&D tax credits to which they are entitled. If you think you have to have a PhD and a laboratory to be conducting qualified activities as defined by the Internal Revenue Code, think again.
Has your operation produced new or improved products recently? Have you modified product formulations and/or production processes or made other improvements to the efficiency of your operation? If the answer is yes, then there is a strong chance that your agricultural company could benefit from an R&D tax credit study. Let alliantgroup’s agriculture experts help you claim the credits that you deserve.
Examples of Dairy Farming Innovations Eligible for R&D Tax Incentives Include the Following:
Dairy Production
- Optimizing productivity and utilization of dairy pastures
- Developing / Integration of new or improved dairy production systems
- Developing technologies to measure body composition in livestock
- Developing ways to increase milk production
- Developing new gene transfer technologies
- Eliminating / controlling dairy cattle disease
- Conducting horticultural R&D activities
- Evaluating/Integrating of accelerated growth formulas
- Avoiding antibiotic residues in milk
- Making efforts to control molds and mycotoxins
- Attempting to improve milking procedures to increase milking efficiency
- Evaluating and implementing of odor control treatment method
Dairy Product Processing
- Developing an innovative product that is new to the market
- Developing new processing techniques or facilities
- Experimenting with aging techniques
- Experimenting with preservatives to increase shelf life of various dairy products
- Developing or experimenting with new feeds or feeding techniques for dairy cattle
- Developing and experimenting with new breeding techniques
- Developing automated processes
- Developing specialty products such as reduced fat, low-carbohydrate, or protein-enhanced dairy products
- Developing products with lengthened shelf lives
- Developing or modifying pasteurization processes
- Developing new or improved methods to minimize bacteria and other contaminants
- Developing or modifying bottling processes
- Shepherding products or processes through regulatory or industry approval processes (e.g., FDA, USDA, ISO-9000)
alliantgroup’s Agriculture Specialization Team
In order to better serve companies in the agriculture industry (including dairy farming), alliantgroup has developed an Agriculture Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that comprise agriculture. This group includes individuals with extensive experience in agriculture-related industries.
Download our free Agriculture R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.
