© 2017 BRAYN Consulting LLC. All Rights Reserved. BRAYN Consulting LLC is a knowledge firm that supports CPA firms and their clients in obtaining R&D, Production & Construction incentives. Headquartered in the greater Los Angeles, California area, BRAYN is comprised of technical experts with decades of Big 4 and national tax consulting firm experience in the area of R&D, production, construction, energy, and growth incentives. THIS PRODUCT OR SERVICE HAS NOT BEEN APPROVED OR ENDORSED BY ANY GOVERNMENTAL AGENCY, AND THIS OFFER IS NOT BEING MADE BY AN AGENCY OF THE GOVERNMENT.

IRS Circular 230 Disclosure - To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Other Incentives

  • Develop new or improved product formulations to enhance flavor or increase nutritional content
  • Create new or improved food manufacturing processes to meet federal, state, and local health guidelines
  • Produce pilot batches of foods or beverages for shelf life and stability analysis

199 DPAD

IRC Section 199 Domestic Production Activities Deductions (DPAD) represents a valuable tax incentive for businesses that perform domestic architecture, engineering, and construction services.  Eligible engineering and architecture services include consultation, investigation, evaluation, planning, design and supervision of construction. Construction activities must be domestic and can include residential or commercial building improvements as well as infrastructure projects. Generally, the tax deduction can be as much as 9% of taxable income.

  • Integrate new or different ingredients for improved taste, smell, or texture
  • Design new packaging for improved temperature regulation or durability
  • Modify formulations to include more sustainable ingredients

Due to the dynamic nature of the food and beverage industry, many companies are prime candidates for tax breaks. Companies developing new or improved food or beverage products, manufacturing processes, and packaging can qualify for sizable federal and state R&D tax credits.

Food Manufacturer Case Study

ItemAverage Annual Amount
Gross Revenues$63,000,000
Total Payroll$8,600,000
Qualified Research Expenses (QREs)$2,300,000
Net Federal Credits$180,000
Net State Credits$210,000
Total Net Federal and State Credits$390,000

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Food and Beverage

Contact BRAYN for an initial consultation. We’ll work with you one on one to determine a roadmap to success. ​We look forward to working with you soon. ​

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Examples of Qualified Activities