Medical device companies design products, processes, and systems to improve patient outcomes, reduce human error, and decrease recovery times. Many medical devices now incorporate sensors and software to generate, compile, and transmit diagnostic and other clinical data. Whether your medical device company is creating a new device, developing technology to enhance functionality of a current device, or pursuing other innovations, you can likely offset these 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:
- Improving wearables with telemedicine/telehealth integration
- Developing new cybersecurity protocols to protect patient information
- Designing and manufacturing advanced thermal/radiofrequency ablation (RFA) systems
- Generating prototypes of products for testing and validation
- Conducting validation testing to satisfy FDA and/or other regulatory agency requirements
- Employing new materials or composites to improve the functionality or performance of an existing product
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Biocompatibility Scientists
- Cybersecurity Specialists
- Data Analysts
- Human-Centered Design Engineers
- Machine Learning Engineers
- Surgical Robotics Engineers
- Software Engineers
- Toxicology Scientists