There are many industries and activities that fall under the medical and pharmaceutical umbrella, including biopharmaceuticals, nutraceuticals, medical instruments and devices, and analytical testing. A wide range of support activities, from reagent preparation to the time and money required to obtain FDA approval, can be considered qualified research expenses (QREs) and claimed with the R&D Tax Credit. In addition to the federal credit, many states offer tax breaks. Pre-revenue companies and start-ups with less than five years of revenue can use the federal R&D tax credits to offset future payroll taxes.
The following industries have claimed significant R&D tax credits and received millions in additional capital to reinvest into their workforce, infrastructure, and continued innovation:
Example activities that qualify:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Unsure of whether your medical and/or pharmaceutical development qualifies? The innovations your company has been working on may be eligible for significant tax breaks. Strike Tax Advisory employs tax experts with years of experience in R&D Tax Credits. At Strike, we work on a success-based fee structure enabling businesses in the medical and pharmaceutical industry to claim R&D and Orphan Drug credits/refunds without any out-of-pocket costs. We offer complete audit protection and a money-back guarantee. Use our R&D Tax Calculator to estimate your potential benefit, and partner with Strike to claim your tax credits with no up-front costs. Contact one of our experts today.
The R&D Tax Credit was created to incentivize companies across multiple industries to keep high-tech jobs in the United States. Companies can claim employee wages, supplies & raw materials, computer rental costs, and third-party contractor expenditures incurred throughout the R&D process. Current law permits companies to amend prior year tax returns (going back three years), offering additional financial benefits from tax refunds. If you cannot use the R&D credits immediately, the IRS allows taxpayers to carry credits forward up to 20 years.
Potential annual federal tax savings of a small biotech company ($1 million in QREs)
Amount of third-party contractor expenses that can be claimed (CROs)
Median cost of a pivotal oncology trial
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of what your potential state tax credit!