R&D Tax Credits for Pharmaceuticals
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What is the R&D Tax Credit for Pharmaceuticals?
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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?
![Science](https://static.wixstatic.com/media/db6e66c11cf24c1aa7aa0b93a17bbb2f.jpg/v1/fill/w_61,h_41,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/db6e66c11cf24c1aa7aa0b93a17bbb2f.jpg)
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.
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What can the R&D Tax Credits do for Pharmaceutical businesses?
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Reduce your payroll taxes
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Use as non-dilutive funding
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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:
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Identify & Discover
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​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.
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Quantify​
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Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.
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Qualify​
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Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.
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Validate & Support​
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When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.
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Annual Reviews to Maximize Credits​
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In addition to discovering existing R&D tax credits your Pharmaceutical 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:
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Clinical Trials
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Vaccines
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Pharmaceutical Development & Reformulation
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Drug Compounding
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Generic Drug Development
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Orphan Drug Development
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Reagent Development
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Packaging
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Medical Devices
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Medical Equipment Manufacturers
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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:
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Scientists (Analytical, Formulations, etc.)
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Clinical Trial Managers
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QA/QC Employees
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Chemists (Process, Manufacturing, etc.)
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Chemistry Manufacturing and Controls (CMC) Employees
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Technicians (Lab, Maintenance, Production, etc.)
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Pharmaceutical Development Employees or Pharma Operations Employees
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R&D Lab & Drug Discovery Employees
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Discovery Biology Specialists
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Pharmacology Employees
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Clinical Support & Preclinical Specialists
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Research & Formulations Development Employees
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Regulatory Operations Employees
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Materials Management Employees
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Biometrics Employees
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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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