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Ohio | The way it was explained to me is your research needs to fall into one of these categories, process or product. Product research would be bringing a new or improved product to the market. An example would be developing a new soybean that resistant to stink bug damage. The process side can claim additional expenses to improve your process. In this scenario you could compare the old hybrid to a new hybrid and deduct the difference in the additional price of the new hybrid.
You are basically correct that the companies pushing this have no skin in the game. I thought there was already a court case regarding a chicken farm where they let the firm off the hook, but went after the farm.
I think it's worth pursuing if you are actually doing research and keeping the records. If you are just looking for the deduction you better hope you don't get audited. | |
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R and D Tax Credits
