Why food manufacturers qualify
The four-part testNew products count as R&D
A formula or process only has to be new to your company to count. It does not need to be new to the industry.
Every formula has unknowns
Will it hold texture, and will it run on the line? Answering that is qualified work.
Test batches are experimentation
Bench trials, pilot runs, and revised formulas satisfy the experimentation test. Your batch records are the evidence.
The science is already there
Your work rests on food science and chemistry. For manufacturers, the science test is the easy part.
A short study shows which of your products qualify, and proves it. Read the four-part test in the words of the statute.
What qualifies in practice
Work your plant already does- Product formulationDeveloping a product to hit a texture, nutrition, or stability target through trial batches is qualified development.
- ReformulationRemoving an allergen, cutting sodium or sugar, or replacing an ingredient while holding the product takes trials that count.
- Shelf life and food safetyTesting water activity, pH, and packaging to keep a product safe and stable is experimentation on the record.
- Scale-upTaking a bench recipe to a production line raises questions that only pilot runs answer. Those runs qualify.
- Process developmentWorking out cook, cool, fill, or freeze parameters for a new product is process research.
- Packaging developmentTesting films, seals, and formats to protect a product through distribution is development work.
- Line automationAdapting equipment to a new product, or solving a throughput problem, is qualified problem solving.
- Specialty and clean-label productsDeveloping gluten-free, plant-based, or clean-label versions of a product is technical iteration.
Where the credit comes from
The expenses that countDevelopment and plant wages
The time your product developers, QA staff, and plant leads spend on qualified products is the largest piece for most companies.
Trial ingredients
Ingredients and packaging consumed in bench, pilot, and test runs can count as supplies.
Outside labs and co-packers
A share of what you pay U.S. testing labs, co-packers, and food scientists on qualified work counts too.
What does not count
Routine production of a settled product, quality control on shipped goods, and marketing stay out. The study draws that line honestly.
Common questions
Does a new flavor count as research?
A flavor chosen by taste alone does not. A product developed against a measurable target, such as shelf life or texture, does. Most launches involve both, and the study separates them.
We use a co-packer. Do we still qualify?
Yes. The formulation and process work your company does qualifies, and a share of what you pay a U.S. co-packer for trial runs can count with it.
Do failed test batches count?
Yes. A batch that did not hold up is evidence of experimentation. The ingredients and time in it can qualify.
We are a small specialty producer. Are we too small?
No. The credit has no minimum size. A small company with a real development program qualifies on the same terms as a large one.
How far back can we claim?
Up to three prior tax years, by amended return. Credits you never claimed are still there to collect.
What records do we need?
The ones you already keep. Formulas, batch records, lab results, spec sheets, and invoices are the evidence. The study organizes them against the test.
What happens if the return is examined?
The people who wrote the study answer for it. Audit defense is included in every study at no added cost.
Which form does the credit go on?
Form 6765, filed with the return. From there it carries onto Form 3800 as part of the general business credit. The Form 6765 guide and the Form 3800 guide walk a CPA through both.
Thirty minutes shows whether you qualify.
Book a call and bring the person who knows the work. We will cover whether your projects qualify and what a credit could be worth.
Book a call Or write to inquiries@thefoundryfirm.com