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R&D Tax Credits for Pharmaceuticals

What is the R&D Tax Credit for Pharmaceuticals?

The R&D tax credit for Pharmaceuticals is a unique tax incentive that benefits Pharma businesses that develop new pharmaceuticals, biologics, delivery systems, diagnostics, and devices. The Pharma R&D Tax Credits are also available to companies who develop new products, processes, formulas, or techniques that improve functionality, reliability, quality, or performance.  The R&D tax credit reduces your federal tax liability dollar-for-dollar and allows businesses an immediate source of liquid assets to get projects off to an immediate start.  Businesses are also able to claim the R&D tax credits retroactively for up to 3 or 4 years for work that has already been completed.

 

Many pharmaceutical businesses may be eligible for the R&D tax credits and not even realize it.  Does your pharmaceutical business qualify for the R&D tax credit?  The IRS has 4 guidelines in place to help businesses understand if they may qualify:

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

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

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

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

If you answered yes to these 4 questions, your pharmaceutical business may be eligible to claim these beneficial R&D tax credits.  Proveres is here to help you figure out the details.

What can the R&D Tax Credits do for Pharmaceutical businesses?

 

  • 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 Aerospace business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Some examples include, but are not limited to Research, Development, Design, Experimentation, or Testing of any of the following industries:
 

  • Clinical Trials

  • Vaccines

  • Pharmaceutical Development & Reformulation

  • Drug Compounding

  • Generic Drug Development

  • Orphan Drug Development

  • Reagent Development

  • Packaging

  • Medical Devices

  • Medical Equipment Manufacturers

  • Analytic Research Labs

 

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

  • Scientists (Analytical, Formulations, etc.)

  • Clinical Trial Managers

  • QA/QC Employees

  • Chemists (Process, Manufacturing, etc.)

  • Chemistry Manufacturing and Controls (CMC) Employees

  • Technicians (Lab, Maintenance, Production, etc.)

  • Pharmaceutical Development Employees or Pharma Operations Employees

  • R&D Lab & Drug Discovery Employees

  • Discovery Biology Specialists

  • Pharmacology Employees

  • Clinical Support & Preclinical Specialists

  • Research & Formulations Development Employees

  • Regulatory Operations Employees

  • Materials Management Employees

  • Biometrics Employees

  • AI or AR/VR Employees

 

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

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