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:
Analytic Research Laboratories
Generic Drug Development
Orphan Drug Development
Pharmaceutical / Biologics Development or Reformulation
Example activities that qualify:
- Developing new treatments, drugs, and compounds
- Developing new test protocols that are not commercially available
- Improving formulations or drug delivery mechanisms
- Conducting pre-clinical research and clinical trials (Phases I-III)
- Determining new applications/treatments for existing drugs
- Developing generic formulations for off-patent, off-exclusivity drugs
- Conducting tests to satisfy government regulatory requirements
- Improving drug manufacturing processes
- Customizing formulations (compounding pharmacies)
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Chemists / Biochemists
- Clinical Trial Coordinators
- Laboratory Technicians
- Mechanical / Biomedical Engineers
- Postdoctoral Fellows
- QA / QC Staff
- Research Scientists
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 Advisory, LLC 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.
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