for the R&D Tax Credit
below and one of our R&D Tax Credit experts will contact you.
Qualify for the
R&D Tax Credit
PRODUCTS AND PROCESSES
R&D Tax Credits for the Life Sciences Industry
Refunds are available for companies performing research within the Life Sciences Industry. The research credit provides dollar-for-dollar cash savings each year for companies performing activities related to the development of new or improved products and processes. These benefits could provide much needed cash to hire additional employees, increase R&D, expand production facilities, etc.
Many companies involved with the life sciences are unaware that their efforts within designing and developing their products can yield a large amount of research credits. Examples of R&D activities related to the industry as well as potentially qualifying job titles are listed below.
Examples of Qualifying R&D Activities
- Automation of internal processes by developing and implementing new hardware and software systems
- Design and manufacturing of prototype medical devices, drug delivery systems, or pharmaceutical packaging apparatuses
- Development and testing of new pharmaceuticals, therapies, biologics, or other medical compounds
- Improving existing products to increase shelf life, reduce side effects, or prolonged duration of therapeutic activity
- Production of clinical trial lots and initial scale-up of manufacturing processes
- Support of direct research activities, such as quality testing, maintaining lab equipment, data collection, and regulatory compliance work
Potentially Qualifying R&D Job Titles
- Analytical Chemist
- Analytical Scientist
- Control System Lead
- Drug Product Engineer
- Good Manufacturing Practices (GMP) Analyst
- Lab Manager
- Lab Technician
- Mechanical Engineer
- Process Engineer
- Process Integration Manager
- Quality Assurance/Control (QA/QC) Specialist, Manager, or Director
- Research Associate, Research Scientist
- Validation Engineer
Orphan Drug Tax Credit
Companies that have qualifying activities for the ODC may also qualify for the R&D Tax credit, but both credits cannot be claimed for the same expense. Typically, the ODC often provides a more lucrative benefit than the R&D Tax Credit. Yet, companies often fail to fully maximize the ODC that they are otherwise eligible to claim due to a lack of knowledge, expertise and/or resources. » Learn More
For tax years beginning after December 31, 2015, eligible small businesses (those with $50 million or less of gross receipts) may claim the research credit against AMT liability.
Up to $250,000 in Payroll Tax
Qualified start-up companies may elect to use up to $250,000 of the research credit against payroll taxes. Treasury Regulations have substantially broadened the range of taxpayers who are eligible for the credit. Start-ups to publicly traded businesses who were previously unable to realize a benefit from this lucrative tax credit should reassess their eligibility.
Estimate Your Benefits with our FREE Calculators
Use our calculators for an estimate of state and federal R&D tax credit benefits or to determine if you can offset payroll tax using the R&D tax credit. It's easy to use and free. If at any time you have questions, contact us. We are here to help you realize your maximum tax benefit.
Get a Free Download of this Research & Development One Pager
Research and Development Tax Credit Insights
DFW, Texas – KBKG, a nationwide tax specialty firm, hired new R&D Tax Credit Director, Bill Taylor, to join its Texas office. Bill has over 10 years of experience providing federal tax consulting services to companies in various industries, including technology, aerospace and defense, manufacturing, and other professional services. Bill began his career with a … Read More
The California Small Business COVID-19 Relief Grant Program, a $2.1 Billion state-funded package, was created to provide much needed relief to California small businesses. Part of the state and Governor Newsom’s plan includes a measure that would allow up to $150,000 in PPP expenses to be eligible for deduction on state returns. While the details … Read More
Atlanta, Georgia – Nationwide tax specialty firm KBKG hired two new Directors, Amar Patel and Ian Williams, as part of their Southeast practice. Both Directors join KBKG with over 25 years of combined experience in Cost Segregation and Research & Development Tax Credits, two key services offered by the firm to CPAs and businesses. As … Read More
As featured in Accounting Today When Joe Biden was inaugurated last month, he assumed all the responsibilities of the American presidency, including tax policy decisions. With the advantage of a Democratic majority in both houses of Congress, his administration will probably pursue tax policy options to raise revenues to offset the deficit attributable to the … Read More
As featured in PICPA As the world raced to create treatments for the worldwide coronavirus pandemic, a spotlight was on the domestic life sciences and pharmaceutical industry like never before. Companies across the industry leveraged artificial intelligence, data analytics, and novel applications of historical medicines, among other ideas to combat the virus. The demand for … Read More
Are you a business owner that is unhappy with your recent tax bill? If you have not explored it yet, the Research and Development (R&D) tax credit can provide significant benefits to your business’ bottom line. Chances are you could be missing out on a dollar-for-dollar reduction in your federal and state income tax liability. … Read More
Let’s assume a scenario where you filed for the credit for increasing research (“R&D credit”) and the Internal Revenue Service (“IRS”) selected your return for examination/audit. At the conclusion of the audit, the IRS has two basic options: a “no change” or a “disallowance.” As much as everyone would like to receive a “no change,” … Read More
Updated September 16, 2020 The Section 41 Research Credit was enacted in 1981 as a temporary code section and made permanent with the passage of the Protecting Americans from Tax Hikes (“PATH”) Act of 2015. The research credit is an incentive providing taxpayers across all industries, performing qualified activities, the opportunity to reduce their tax … Read More
The research and development tax credit is one of the most valuable credits leveraged by innovators and entrepreneurs since its inception in 1981. While the credit has been around for almost 40 years, renewed focus on research and development has created opportunities for even more businesses to take advantage. Curious to know more? Here are … Read More
The following article is written by the IRS. View the original source here: https://www.irs.gov/newsroom/irs-debunks-tax-refund-myths. WASHINGTON ― With the July 15 tax deadline now past, the Internal Revenue Service reminds all taxpayers that there is no secret way to find out when a refund will be issued. Most taxpayers have already filed their federal tax return, … Read More