R&D Tax Credit for Biomedical

R&D Tax Credits for Biomedical

What is the R&D Tax Credit for Biomedical?

The R&D tax credit for Biomedical is a unique tax incentive that supports businesses involved in the development and improvement of biotechnology, medical devices, pharmaceuticals, and healthcare-related products and processes. This tax credit significantly reduces your federal tax liability, providing businesses with a dollar-for-dollar benefit to fund their innovative projects. Biomedical companies can also retroactively claim R&D tax credits for several years for completed work.

This credit is no longer exclusive to large corporations; even small startups can benefit from it. Recent changes in tax laws have expanded access to the R&D tax credit, making it more accessible to developers in the biotech sector. To be eligible for this incentive, a biotech company must engage in qualified research activities, regardless of its size. This tax credit aims to foster innovation within the diverse field of biotechnology, where research activities are likely to occur across various career paths. Qualifying research activities must be conducted in the U.S.

Many Biomedical businesses might be eligible for R&D tax credits without realizing it. Does your Biomedical company qualify for the R&D tax credit? The IRS has established four key criteria to help determine eligibility:

1. Does your business develop or improve upon products, businesses, or services?

2. Does your business systematically evaluate one or more alternatives during the process of experimentation?

3. Does your business attempt to solve a technical uncertainty?

4. Does your business fundamentally rely upon established principles of science?

If your answer is yes to these questions, your Biomedical business could be eligible for valuable R&D tax credits. Proveres is here to help you navigate the specifics of this unique tax incentive.

What can the R&D Tax Credits do for Biomedical?

R&D tax credits can bring significant benefits to your Biomedical business, including:

Reduce your payroll taxes
Use as non-dilutive funding
Carry your credit forward

How It Works

Proveres will work closely with your business to gain maximum tax credits each year by following these 5 steps:

Identify & Discover

Proveres provides a full analysis of your business and operations, and will help identify which projects and work your business does that can be claimed towards the R&D tax credit.

Quantify

Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.

Qualify

Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.

Validate & Support

When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.

Annual Reviews to Maximize Credits

In addition to discovering existing R&D tax credits your Biomedical business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Biomedical Activities That May Be Eligible for R&D Tax Credits (but not limited to):

Developing and testing new pharmaceuticals, medical devices, and drug delivery systems
Designing and manufacturing prototype medical devices, drug packaging apparatuses, and biotechnological equipment
Developing and testing new therapies, biologics, and medical compounds
Enhancing existing products to improve effectiveness, minimize side effects, and increase shelf life
Conducting clinical tests to meet regulatory requirements before commercialization
Direct research activities, including quality testing, data collection, and regulatory compliance work
Developing new manufacturing processes and associated technologies in the Biomedical sector
Creating hardware and software systems for research and clinical development
Finding new applications for existing medical products
Designing innovative production systems and manufacturing techniques
Developing technologies to comply with regulatory requirements and reduce pharmaceutical production costs

If your business engages in these activities, it's likely eligible for R&D tax credits in the Biomedical sector. Working with a professional R&D tax credit advisor like Proveres can help you determine your eligibility and maximize this research and development tax incentive.

Additionally, if you have employees or 3rd-party contractors with the following job titles, you may qualify for R&D tax credits:

Biomedical and Environmental Engineers
Analytical Chemists and Scientists
Lead Drug Product Engineers
Mechanical and Process Engineers
Quality Assurance and Control Professionals
Manufacturing Specialists
Clinical Researchers
Software Engineers
Environmental Scientists
Sales, Technical Support, and Business Management
Project and Integration Managers
Research Scientists
Validation Engineers
Epidemiologists
Microbiologists and R&D Scientists

To learn more about the R&D Tax Credit for Biomedical, and whether your business qualifies, please contact us