Medical equipment encompasses anything from simple tools to advanced molecular imaging systems. Medical equipment manufacturers employ teams of engineers, CAD designers, and software developers who work in tandem with healthcare professionals to develop new products and instruments that enhance patient care and outcomes. Many steps in the process - concept, design, development, manufacturing, and testing - are considered research and development (R&D) for tax purposes, and a significant portion of the associated costs can be offset through 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:
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!