Package design, development, and manufacturing are integral to the pharmaceutical and medical device industries. Companies must also conform to FDA-approved guidelines, comply with legal and safety regulations, and satisfy retailer and supply chain requirements. This involves a considerable amount of research and development (R&D) on the part of design and packaging engineers. Many of these costs can be recouped 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:
- Developing novel temperature-sensitive labels to ensure proper transport/storage
- Improving or enhancing blow-fill-seal (BFS) technology
- Creating new smart adherence packaging solutions
- Developing and validating new manufacturing processes
- Evaluating new packaging modalities to meet shipping requirements
- Creating new sustainable and/or eco-friendly packaging
- Adding automation or robotic capabilities to a production line to improve efficiency
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Design Engineers
- Manufacturing Managers
- Packaging Development Engineers
- Process Engineers
- Project Managers
- QA/QC Staff
- Reliability Engineers