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Medical &


Although the medical and pharmaceutical industries have long taken advantage of R&D tax credit, many possibilities may still be overlooked. Prototyping, process development, testing, and other processes that occur in the plant or on the shop floor, such as the preclinical/discovery research and clinical development stages, are major foci for the purposes of R&D tax credit. Let TaxIncennovations help you get onto the path to valuable R&D tax credits for your company today!

Examples of qualifying activities associated with medical and pharmaceutical industries include the following but are not limited to:

  • Improving product stability or shelf life

  • Integration, functional, unit, and performance testing

  • Manufacturing experimental clinical trial lots of pharmaceuticals

  • Testing to satisfy foreign and domestic regulatory requirements

  • Developing new or improved pharmaceuticals, diagnostics, or devices

  • Developing, designing, and testing prototypes for new product validation

  • Improving or developing drug formulations to reduce side effects or dosage

  • Functional enhancements and new capabilities for existing applications designed to generate a competitive advantage

  • Developing new medical products, equipment, devices, or technology as well as next-generation products and product improvements

Prior to 2016, small to mid-size companies who qualified for the R&D tax credit were sometimes limited to utilize the credit by Alternative Minimum Tax (AMT).  With the new regulations put in place in 2016, small to mid-size businesses can offset their AMT with the R&D tax credit.

Case Studies

Medical Device Company with gross receipts of $50 million specializing in the design of medical equipment  can generate $450,000 in Federal and State R&D Tax Credits per year.

Let TaxIncennovations evaluate how we can assist you in claiming R&D tax credits.

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