Developing reagents for the medical, biotechnology, and pharmaceutical industries is a research-intensive process. Producing kits, antibodies, cell lines, fluorescent dyes, and many other tools is a process of trial and error. Companies that undertake this type of research and development (R&D) can offset some of their expenses 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:
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!