​Across Napa Valley, innovation happens every day in the vineyard. Growers experiment with new irrigation strategies, trial different rootstocks, test soil health practices, and refine cultivation methods to produce better fruit while stewarding the land for the future.

What many growers don’t realize is that some of these efforts may qualify for a federal incentive known as the Research and Development (R&D) Tax Credit.
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Originally designed to support technological innovation, the credit also applies to agricultural businesses, including vineyards and wineries, that experiment with new or improved processes, techniques, or products. In many cases, growers are already doing work that qualifies without realizing it.

The federal R&D tax credit, established under Section 41 of the Internal Revenue Code, provides a dollar-for-dollar reduction in federal taxes for businesses that invest in qualifying research activities in the United States.
 
Unlike a deduction, which only reduces taxable income, a tax credit directly reduces the amount of tax owed. In addition to forming the basis of the credit, the same qualifying expenditures may also be taken as a deduction.
 
For agricultural businesses, this incentive recognizes that innovation is not limited to laboratories. Vineyard experimentation, equipment trials, and cultivation improvements can all qualify if they meet IRS criteria.

​To qualify for the credit, activities generally must meet four conditions:
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1. Permitted Purpose
   The work aims to develop or improve a product, process, or technique.
2. Technological in Nature
   The activity relies on principles of biology, chemistry, engineering, or similar sciences.
3. Elimination of Uncertainty
   The project attempts to solve a technical challenge or unknown outcome.
4. Process of Experimentation
   The work involves trial and error, testing, modeling, or evaluation.

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Many vineyard improvements, from irrigation design to vineyard layout trials, can meet these criteria when properly documented. 

The Napa Valley wine community has long understood that stewardship extends beyond the vineyard rows. It also means advocating for thoughtful policies that sustain agriculture, protect the Agricultural Preserve, and ensure that grape growing remains viable for generations to come.

Over the past year, the Napa Valley Grapegrowers has been working closely with three key partners — Napa Valley Vintners, Napa County Farm Bureau, and Winegrowers of Napa County — to develop a shared set of recommendations for local policy improvements that support Napa’s agricultural community.
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Together, the four organizations represent thousands of growers, wineries, and agricultural businesses that form the backbone of Napa County’s rural economy and landscape.

This initiative began more than a year ago, when leadership from the four organizations came together to identify areas where local policies could better reflect today’s agricultural realities. Through ongoing conversations with elected officials, county staff, and community stakeholders, the groups developed a joint set of recommendations designed to ease unnecessary regulatory burden, modernize outdated policies, and strengthen protections for agriculture.

The result is a unified policy document delivered to the Napa County Board of Supervisors outlining both immediate actions and longer-term planning priorities that support the continued vitality of Napa County agriculture.
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This collaboration reflects something important: Napa’s wine industry is strongest when it works together.

Agriculture is not only Napa Valley’s heritage,  it is a cornerstone of the region’s economy and community. Agriculture generates more than $11.7 billion in economic benefit for Napa County and supports nearly 72 percent of the local workforce.

Yet growers and wineries today operate within an increasingly complex regulatory environment. Federal and state regulations already shape nearly every aspect of farming and land stewardship. When local processes become outdated or unnecessarily burdensome, they can create delays and challenges not only for growers but also for county staff and the broader community.
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The joint recommendations aim to address these issues constructively while maintaining the values that have defined Napa Valley since the establishment of the Agricultural Preserve nearly 60 years ago.

The organizations’ recommendations focus first on practical improvements that can streamline processes and update outdated policies. These include:

• Updating the county’s interpretation of AB 720 to include vineyards located on winery parcels
• Removing the outdated “By Appointment Only” winery sign requirement
• Allowing administrative approval for minor marketing plan changes that do not increase visitor intensity
• Establishing clearer processes for incomplete permit applications to reduce delays
• Streamlining review of minor or CEQA-exempt project changes
• Recalibrating groundwater management fees to better reflect realistic program costs
• Updating baseline tree canopy metrics and encouraging flexible mitigation strategies
• Reforming the appeals process, including fee recovery for prevailing parties and transparency around parties in interest

​These recommendations are intended to make local processes more efficient while preserving the core protections that safeguard Napa’s agricultural lands.

In addition to immediate policy updates, the joint document outlines broader priorities for Napa County’s upcoming General Plan update and long-term land use planning.
Among the shared goals:

• Maintaining the 75% Napa grape sourcing requirement
• Protecting agricultural zoning and minimum parcel sizes
• Reinforcing urban growth boundaries
• Ensuring Right to Farm protections
• Recognizing vineyards as part of wildfire resilience and landscape stewardship
• Supporting the processing and sale of Napa-grown agricultural products

​These priorities reflect the wine industry’s commitment to maintaining Napa Valley as a working agricultural landscape.

This collaboration will culminate in a joint presentation during public comment at the April 28 meeting of the Napa County Board of Supervisors, where representatives from all four organizations will formally introduce the recommendations and encourage thoughtful dialogue about the path forward.
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Industry leaders, growers, and community members are encouraged to participate and lend their voices in support of a resilient agricultural future.

​By working collaboratively, Napa’s agricultural organizations are demonstrating that thoughtful engagement with local government can strengthen both the industry and the community it serves.
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For NVG and its partners, this effort represents something larger than a single policy discussion. It is a commitment to ensuring that Napa Valley remains a thriving agricultural region, today and for generations to come.

In this episode of Grown in Napa Valley, NVG Executive Director Caleb Mosley speaks with Natalie Collins and John Chandler about the role of the California Association of Winegrape Growers in advocating for growers across the state. They discuss how regional and statewide grower organizations collaborate to address major industry challenges, including market pressures, labor policy, and regulatory issues. The conversation highlights current legislative priorities such as improving wine labeling transparency, expanding opportunities for wineries at farmers markets, and pursuing an agricultural overtime tax credit to help offset labor costs for growers. Despite limited resources, CAWG continues to push proactive policies and unite diverse wine regions to strengthen the future of California winegrape farming. 
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In the episode’s Glass with a Grower segment, Caleb sits down with Lise Asimont of Foley Family Farms to share stories from her career in California agriculture and the wine industry. The conversation offers a candid look at the people behind the vineyards, blending humor, insight, and a fresh perspective on wine culture. Asimont emphasizes that wine should remain approachable and joyful, reminding listeners that the best experiences with wine come from sharing it with others. 

• “We are not a reactionary group. We’re not just fighting bad policy. We’re introducing good policy and trying to get ahead of what’s coming down the road.” - Natalie Collins 
• “I’m a fourth-generation farmer. Farming has been in my family since the late 1800s, so wine grapes are just one part of a long agricultural story for us.” - John Chandler 
• “Wine should be approachable, joyful, and shared with everyone.” - Lise Asimont 
• “Everyone is trying to do more with less right now. Just like our growers, our associations are being asked to solve more problems with fewer resources than ever before.” - Natalie Collins 
• “As growers, we’re busy farming every day. Associations like CAWG are critical because they tackle the issues we simply don’t have time to fight on our own.” - John Chandler 
• “I’ve been in the wine industry for about thirty years now… and I started my career sleeping in my truck during frost season in Santa Maria.” - Lise Asimont