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:
- Customizing standard assays to improve functionality
- Developing a novel testing protocol that is not commercially available
- Creating custom panels for sequencing targets and/or genomic content of interest (known cancer determinants, T-cell repertoire, etc.)
- Designing custom columns for bioseparation experiments
- Automating manufacturing processes to increase throughput or decrease costs
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Cell Culture Technicians
- Machine Learning Software Developers
- Postdoctoral Research Fellows
- Product Managers
- Research Scientists