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How Hoosier farmers can take advantage of the R&D Tax Credit

The midwest director at alliantgroup, a tax consulting firm, says the Research and Development Tax Credit helps farmers offset expenses related to ag innovation.

Tax consultant Greg Knarr says there is a misconception the credit is only for large ag companies.

“People think of lab coats and beakers and test tubes, not what’s actually done in the field,” he says. “And so as farms, when we are evaluating new hybrid, the input costs related to that. So our seed fertilizer and chemical cost a lot of those costs to feed into the eligibility of the R&D credit.”

He tells Brownfield there are several practices that could qualify for the tax credit.

“Whether it’s trying new hybrids, new crop protection products, new fertility treatments,” he says.

During his presentation at the recent Indiana Ag Policy Summit, former Ag Secretary Mike Johanns told Hoosier farmers that a recent court case ruled that the cost of seed could qualify for an R&D tax credit.

Knarr says farmers can claim the credit dating back to 2021.  

Brownfield spoke to Knarr at the Indiana Ag Policy Summit about current policy issues affecting Hoosier farmers.

Photo provided by the Indiana Soybean Alliance.