Recover real money for your cultivation business — federal & state R&D tax credits and utility & equipment rebates, sourced through our partners and handled end to end by Hydro Supply Co. so everything stays in one place.
Unlock the tax credit hidden in your R&D. The federal Research & Development credit is a dollar-for-dollar reduction in tax for work you already do to develop or improve products, processes, and systems — and many states stack their own credit on top. Through our partnership with Royse Partners, Hydro Supply Co. delivers the full assessment, documentation, and audit-ready substantiation, so you capture every dollar you’ve earned without the headache — all handled in-house with one point of contact.
Cannabis operators face a tax landscape all their own — and most leave real money on the table. 80% of eligible U.S. businesses don’t know they qualify, and 6–20% of qualified R&D costs can come back as credits. Here’s how it actually works for cultivation and cannabis-adjacent facilities:
Qualifying R&D happens on the grow floor — cultivars, climate, fertigation, automation.
If you pay employees or contractors to develop or improve how you grow, you likely qualify — no minimum revenue, and startups with no profit have a payroll-offset pathway. Qualifying work includes:
Developing cultivars, formulations, or product lines.
Engineering grow rooms, fertigation, and production workflows.
Building or integrating environmental and control systems.
Experimental designs, pilot runs, and testing.
Industries served include agriculture & cultivation, manufacturing, engineering, biotech, and software.
A no-cost assessment of whether a credit makes sense for you.
We review your work and provide a credit estimate.
Documentation collected and run through a three-layer review.
A final Credit Letter with federal/state schedules and filing instructions.
A full report with methodology and audit-defense support.
Qualified R&D expenses generate a direct credit against federal or state tax liability — not just a deduction.
Amend prior-year returns to recover unclaimed federal or state R&D credits you already earned.
Qualified small businesses can apply up to $500,000 of R&D credits each year against payroll taxes — even pre-profit.
For informational purposes only. Businesses should consult a qualified professional for guidance specific to their circumstances.
The full landscape — 280E, state credits, qualifying activities, key benefits & real results. Click the cover to read it right here, no download needed.
Answer a few questions for an instant ballpark of your federal R&D credit. Royse Partners then confirms your exact federal + state number — everything handled in-house by Hydro Supply Co.
Horticultural Rebates & Financial Incentives
Through our partnership with What Rebates, we simplify access to utility rebates, energy incentives, and R&D tax credits for horticultural operations. Their Business & Industrial Lighting Initiative helps cultivators upgrade equipment — LED grow lights, HVAC, dehumidifiers, controllers — and get paid back by their utility company.
Whether you’re retrofitting an existing facility or building new, What Rebates handles the entire application process from start to finish — paperwork, utility coordination, and payment tracking — so you focus on growing.
Multiple pathways to reduce your capital costs and operating expenses.
LED grow lights, HVAC systems, dehumidifiers, and controllers. If your utility offers a rebate, What Rebates will find it and file it.
Solar installations, energy efficiency upgrades, and utility-sponsored programs to slash your electricity costs long-term.
Qualified research activities and expenses translate to dollar-for-dollar tax liability reductions. Most cultivators qualify and don’t know it.
Flexible financing for equipment upgrades so you can start saving immediately without large upfront capital expenditure.
Submit your most recent utility bill and facility details. What Rebates will identify every rebate, incentive, and tax credit you qualify for — completely free.
