Medical &

Pharmaceutical

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

A 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.