Cosmetic and Skincare companies may be eligible for R&D tax credits for performing qualified research activities. For example, the following activities may be eligible for R&D tax credits:

  • Performing technical research on the use of substitute ingredients for improved quality, sustainability, consistency, or cost reduction (e.g. organic bio-based ingredients)

  • Performing technical research on the use of microalgae to promote cell restoration and cohesion

  • Performing technical research of nanotechnology in cosmetics and environmental concerns and safety impacts (e.g. nanomaterials released into the environment during the production)

  • Performing technical research on anti-aging development products (e.g. stem cells for renewing and repairing the epidermis, dermis, hair, and nails) 

  • Performing technical research on personalized skin products through stem cells from plants, bovine embryonic fluid, etc.

  • Performing genomic research to identify the genes responsible for regeneration and formulate ingredients to stimulate regrowth

  • Performing technical research on anti-oxidants (e.g. stimulators of collagen production) to directly support new and/or improved product development

  • Developing new and/or improved chemical product formulations

  • Developing new and/or improved lines of nontoxic hair / skin products

  • Developing new and/or improved distribution methods

  • Developing or testing new and/or improved packaging processes (e.g. automated filling processes)

  • Developing new and/or improved cosmetic applicators

  • Designing alternative testing protocols compared to traditional animal testing (e.g. utilizing human cell-based laboratory tests and computer modeling)

  • Designing new and/or improved natural oils to heal scars

  • Designing new and/or improved formulas to assist skin repair, or soften lines, or reduce wrinkles

  • Designing new and/or improved UV filtering and active ingredient delivery processes to skin cells

  • Designing alternatives to oil-sourced ingredients utilizing biorefinaries (e.g. farmed, marine, and forestry biomass)

  • Testing new and/or improved automated processes or systems

  • Testing prototypes of new products for evaluation and validation

  • Quality assurance testing of new and/or improved products or processes for validation

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