South Dakota Patent of the Month – May 2025
PRAIRIE AQUATECH LLC has been granted U.S. Patent No. 12310384, titled ‘Microbial-based process for high quality protein concentrate’. The patent covers a novel fermentation process [...]
Agriculture Case Study
Nut & Co., established in 1988, specializes in designing and building equipment for pecan growers and shellers, with its owner having started in the pecan industry in 1972. The company has consistently aimed to strengthen the industry by manufacturing high-quality, reliable equipment, maintaining its leadership position. From 2013 to 2016, Nut & Co. incurred qualified research expenses under IRC Section 41, primarily for its Aspirator System, designed in 2012. This system revolutionized pecan shelling by using suction instead of traditional blowing, significantly improving efficiency and plant cleanliness. To qualify for the Research and Development Tax Credit, Nut & Co.’s activities met the Four-Part Test, which includes permitted purpose, elimination of uncertainty, process of experimentation, and technological in nature. Their eligible R&D activities encompassed designing prototypes for the Aspirator System, conducting trials and analyzing data for reproducible results, performing background research to address knowledge gaps, and engaging in ongoing analysis of customer feedback to refine the design. Nut & Co. maintained meticulous records such as project logs, design drawings, testing protocols, and invoices, ensuring compliance readiness for potential IRS audits. Through continuous improvements in production time, efficiency, product reliability, and reduced costs, Nut & Co. successfully eliminated uncertainty through testing and experimentation. As a result, Nut & Co. satisfied the Four-Part Test and qualified for substantial federal and state research and development tax credits for the 2013-2016 fiscal years.