Farm CPA Report

Farm CPA Report

How is the R&D Credit Calculated?

We provide some more details on the R&D Credit

Paul Neiffer's avatar
Paul Neiffer
Feb 03, 2026
∙ Paid
corn field under clear sky
Photo by Jake Gard on UnsplashBe

Before we get started on R&D credit calculations, we will give you a quick update on the Brazil trip.

We arrived almost on time Sunday morning and then spent about an hour an half driving from the airport to the hotel. I tried to stay up until normal bedtime, but fell asleep around 6 pm woke up at 11:30, read some and then fell asleep around 2 am and got up at 6 am. Monday, we spent touring the port of Santos and will provide an update on that in tomorrow’s post.

The Research and Development (R&D) tax credit can be a significant incentive for domestic innovation (even for farmers), yet its complexity often leaves taxpayers questioning which calculation method yields the highest return. Understanding the nuances between these methods is essential for maximizing your tax position.

The Three Primary Calculation Frameworks

Choosing the right methodology depends largely on your farm’s historical data and current growth trajectory.

1. The Regular Research Credit

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