The generic pharmaceutical industry has expanded to include not only the production of off-patent drugs, but the creation of new therapeutic entities (NTEs) and complex and super generics. Developing high-efficiency delivery systems, improving manufacturing processes, and/or reformulating drugs for specific populations (e.g. pediatric patients) all require a significant investment in research and development (R&D). If your company innovates in generic pharmaceuticals, biosimilars, or branded generics, you may be able to recoup costs with the R&D Tax Credit.
Employee wages, raw materials & supplies, and third-party contractor costs associated with R&D activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates.
Example activities that qualify:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!