Cosmetic and Skincare companies may be eligible for R&D tax credits for performing qualified research activities. For example, the following activities may be eligible for R&D tax credits:
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Performing technical research on the use of substitute ingredients for improved quality, sustainability, consistency, or cost reduction (e.g. organic bio-based ingredients)
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Performing technical research on the use of microalgae to promote cell restoration and cohesion
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Performing technical research of nanotechnology in cosmetics and environmental concerns and safety impacts (e.g. nanomaterials released into the environment during the production)
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Performing technical research on anti-aging development products (e.g. stem cells for renewing and repairing the epidermis, dermis, hair, and nails)
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Performing technical research on personalized skin products through stem cells from plants, bovine embryonic fluid, etc.
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Performing genomic research to identify the genes responsible for regeneration and formulate ingredients to stimulate regrowth
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Performing technical research on anti-oxidants (e.g. stimulators of collagen production) to directly support new and/or improved product development
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Developing new and/or improved chemical product formulations
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Developing new and/or improved lines of nontoxic hair / skin products
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Developing new and/or improved distribution methods
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Developing or testing new and/or improved packaging processes (e.g. automated filling processes)
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Developing new and/or improved cosmetic applicators
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Designing alternative testing protocols compared to traditional animal testing (e.g. utilizing human cell-based laboratory tests and computer modeling)
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Designing new and/or improved natural oils to heal scars
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Designing new and/or improved formulas to assist skin repair, or soften lines, or reduce wrinkles
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Designing new and/or improved UV filtering and active ingredient delivery processes to skin cells
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Designing alternatives to oil-sourced ingredients utilizing biorefinaries (e.g. farmed, marine, and forestry biomass)
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Testing new and/or improved automated processes or systems
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Testing prototypes of new products for evaluation and validation
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Quality assurance testing of new and/or improved products or processes for validation