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Education
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• Creating childproof bottles or containers Since only industrial hemp was
• Developing POS applications for inventory man- legalized by the 2018 Farm Bill,
agement or sales plant-touching businesses cannot take
• Experimenting with the drying or extraction pro- advantage of the R&D tax credit.
cess
• Improving seed quality, crossbreeding strains, or
analyzing genetic traits Claiming the hemp R&D tax credit
• Creating bio-products like hempcrete, insulation,
bioplastic, or biofuel Research group New Frontier Data projects that the
cannabis industry will be worth $30 billion a year by
Identifying opportunities in the hemp industry 2025. The hemp R&D tax credit is a tremendous incentive
for entrepreneurs to take a chance on this billion dollar
Since only industrial hemp was legalized by the 2018 Farm industry and get in on the ground floor.
Bill, plant-touching businesses cannot take advantage
of the R&D tax credit. Fortunately, manufacturing The IRS will scrutinize hemp R&D claims more than
companies, ag-tech, software developers, accountants, any other type of R&D claim. Providing substantial
lawyers and anyone else that serves the hemp industry documentation and partnering with a tax advisory firm
can claim the credit. that understands the ins and outs of this niche tax law will
help new hemp businesses claim thousands to reinvest in
Think of industries usually engaged in research and their bottom lines.
development, and then put a hemp spin on it. For example,
canna-tech businesses, or those that are building mobile Tyler Kem is co-founder and president of Strike Tax Advisory, which
or native apps to support a cannabis business, can claim helps businesses discover and claim government-provided tax credits
the same credits that a software company in the fintech and incentives available to them. Strike Tax helps SMBs compete more
space claims. Product development for hemp products, efficiently while keeping jobs in the United States. For more information,
like smoking devices or new formulas, could also qualify. visit www.striketax.com.