The Cosmetic Industry is Earning Head-Turning Tax Credits

Earn Significantly for Staying Ahead of the Competition

Companies within the cosmetic industry are often unaware that the research activities being performed daily to perfect their current products and develop new ones in order to stay ahead in a rapidly expanding industry qualifies them to take advantage of an often underutilized tax credit. The Research and Development Tax Credit was designed with industries like cosmetics in mind, and rewards innovation in business by providing a sizable tax credit to qualifying companies who can use the credits to reimburse costs spent performing research and development.

Beyond the Shelf

The cosmetic industry extends far beyond the shelves of your favorite beauty supply shop or drug store. Each product is designed and developed through a rigorous research and development process funded by the companies. The research and development process can be quite costly, so having a tax incentive that provides significant credits is extremely beneficial for companies within the industry.  

Think about your morning and nighttime skincare and beauty regime. All of the products used were carefully developed to meet the standards of the health department and to provide the luxurious experience you crave. In this age of digital media, consumers are constantly being bombarded with ads and information on new products, formulas, and beauty secrets that they have to get their hands on. These companies working to stay relevant and set themselves apart from their competition are performing qualifying research activities consistently in order to improve their existing products, and constantly develop new ones. Companies are already doing the work so it’s important that they are made aware of the significant tax credits they’re able to take advantage of.

Cosmetic Industry Activities that Qualify:

  • Developing alternative options to animal testing
  • Developing and improving chemical product formulations
  • Developing new ingredients and formulas
  • Researching and developing products with the use of organic and bio-based ingredients
  • Quality assurance research
  • Exploring new tests and evaluations
  • Generating prototypes and samples of new products for testing and validation

Don’t Be That Company That Misses Out

Almost 90% of eligible companies neglect to take advantage of the R&D Tax Credit for the sole reason that they are unaware that the credit exists and that they can qualify. Chances are, the company’s day to day operations already qualify it for a sizable credit. A third-party tax group, like National Tax Group, will look at all the documentation pertaining to the research and development being performed and determine if that company can benefit.

We all like beauty supplies and we all like saving money. There are no risks in having a free assessment of benefits performed by National Tax Group, only the potential for significant benefits. Contact our team today.

 

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