top of page

Cannabis companies may be eligible for applicable state R&D tax credits (subject to IRC § 280E restrictions and additional federal and/or state law investigation) for performing qualified research activities. Note, federal R&D tax credits and other federal tax incentives are still generally prohibited to cannabis companies pursuant to IRC § 280E. Nevertheless, regarding state incentives, the following activities may be eligible for state R&D tax credits.

*However, any taxpayers considering to claim any U.S. federal and/or state tax incentive associated with cannabis products and/or services should seek further professional tax accounting and legal consultation prior to making any tax benefit claim.

  • Performing technical research on cannabis usage for biofuels, textiles and other materials 

  • Performing technical research into hybrid strains for medical therapeutic application

  • Developing new and/or improved efficiency scientific protocols during growing and harvesting 

  • Developing new and/or enhanced strains of cannabis via genetic and cross breeding techniques 

  • Developing new irrigation/hydroponic systems

  • Developing new and/or improved automated systems for indoor growth 

  • Developing new and/or improved concentrates 

  • Designing new and/or improved cultivation techniques 

  • Integrating new and/or improved engineering processes to enhance instrument accuracy regarding strain composition

  • Developing new and/or improved products for consumption (edible, absorption, etc.) 

  • Designing new and/or enhanced oil products and extraction techniques 

  • Designing new and/or improved smoking/vaping/dabbing technology 

  • Developing new and/or improved protocols to prevent mold or product waste

  • Developing new and/or improved technologies for delivery (e.g. mobile applications and product ordering) of cannabis-derived substances 

  • Develop new and/or improved software analytical tools for strand identification  

  • Testing new manufacturing equipment and/ processes to improve harvest yield and cycle

  • Testing of new and/or improved filtration systems for air and water to enhance product consistency, reliability, quality, etc.

  • Evaluating new or improved technologies in air purification, heating or lighting 

  • Evaluating new and/ or improved uses of LED lighting in growing indoors facilities through a scientific process of experimentation

  • Experimenting with new and/or improved topical products and skin absorption procedures

  • Experimenting with new and/or improved lighting, fertilizers, plant spacing, and other variables to increase yield or production

Need more details? Contact us

We are here to assist. Contact us by phone, email or via our social media channels.

bottom of page