R&D Tax Credits  /  Food & Beverage
R&D Tax Credits · Industries

R&D tax credits for
food & beverage.

New recipes, healthier reformulations, longer shelf life, scaling a product from the test kitchen to the plant, it’s all technical development, and much of it qualifies. Food and beverage is one of the most under-claimed industries there is.

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The Opportunity

Your test kitchen is a lab.

Every reformulation to cut sugar, extend shelf life, remove an allergen, or hit a texture target involves testing, iteration, and technical uncertainty. Scaling a recipe to production is its own development challenge. The credit covers both the product and the process, and most food companies claim only half of it.

What Qualifies

The work that counts.

Product development

  • Developing new food or beverage products and formulations
  • Reformulating for health, reduced sugar, sodium, or fat; clean-label; allergen-free
  • Extending shelf life and improving stability and preservation
  • Improving texture, flavor, appearance, or nutritional profile
  • Developing packaging that affects preservation or quality

Process development

  • Scaling recipes from kitchen to full production
  • Improving yield, consistency, and efficiency
  • Enhancing food-safety and sanitation processes
  • Developing new production techniques or equipment
  • Sensory, microbial, and stability testing and iteration
Example Projects

What it looks like in practice.

Sugar reduction

Reformulating a beverage to cut sugar while holding flavor, mouthfeel, and stability.

Shelf-life extension

Developing a preservation approach to extend a product’s life without added preservatives.

Scale-up

Re-engineering a small-batch recipe to run consistently at plant scale.

Worth Knowing

Product and process both count.

Many food companies claim the recipe work but miss the process side, scale-up, yield, food safety, and equipment, which is often the larger pool of qualifying cost. Routine production and cooking to a known recipe don’t qualify, but the technical development behind them does.

We capture both the formulation and the process, so the claim reflects everything your team actually developed.
The Test, Applied

How the four-part test lands here.

01

Permitted purpose

A new or improved product or production process, taste, nutrition, shelf life, safety, or yield.

02

Technological in nature

Grounded in food science, chemistry, microbiology, and process engineering.

03

Elimination of uncertainty

It was uncertain whether a formulation or process would achieve the target.

04

Process of experimentation

Resolved through batching, sensory and stability testing, and iteration.

Common Questions

Questions we hear.

Isn’t this just cooking?

Cooking to a known recipe doesn’t qualify. Developing or reformulating a product, or solving a production challenge, involves the testing and uncertainty the credit rewards.

We use a co-packer or contract manufacturer. Does that matter?

It can affect who claims what. We sort out the roles and apply the contract-research rules correctly.

Do failed formulations count?

Yes. A process of experimentation includes the versions that didn’t work, that’s exactly what the credit is for.

See what your work qualifies for.

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This page is general information, not tax or legal advice. Whether specific activities and expenses qualify depends on the taxpayer’s facts and applicable law, and is determined through the appropriate R&D study. Novaric does not guarantee eligibility, credit amounts, or any IRS outcome.