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R&D Tax Credits for Biomedical

What is the R&D Tax Credit for Biomedical?

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The R&D tax credit for Biomedical is a unique tax incentive that supports businesses involved in the development and improvement of biotechnology, medical devices, pharmaceuticals, and healthcare-related products and processes. This tax credit significantly reduces your federal tax liability, providing businesses with a dollar-for-dollar benefit to fund their innovative projects. Biomedical companies can also retroactively claim R&D tax credits for several years for completed work.

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This credit is no longer exclusive to large corporations; even small startups can benefit from it. Recent changes in tax laws have expanded access to the R&D tax credit, making it more accessible to developers in the biotech sector. To be eligible for this incentive, a biotech company must engage in qualified research activities, regardless of its size. This tax credit aims to foster innovation within the diverse field of biotechnology, where research activities are likely to occur across various career paths. Qualifying research activities must be conducted in the U.S. 

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Many Biomedical businesses might be eligible for R&D tax credits without realizing it. Does your Biomedical company qualify for the R&D tax credit? The IRS has established four key criteria to help determine eligibility:

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1.  Does your business develop or improve upon products, businesses, or services?

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2.  Does your business systematically evaluate one or more alternatives during the process of experimentation?

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3.  Does your business attempt to solve a technical uncertainty?

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4.  Does your business fundamentally rely upon established principles of science?

If your answer is yes to these questions, your Biomedical business could be eligible for valuable R&D tax credits. Proveres is here to help you navigate the specifics of this unique tax incentive.

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What can the R&D Tax Credits do for Biomedical?

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R&D tax credits can bring significant benefits to your Biomedical business, including:

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  • Reduce your payroll taxes

  • Use as non-dilutive funding

  • Carry your credit forward

 

 

How It Works

 

Proveres will work closely with your business to gain maximum tax credits each year by following these 5 steps:

Identify & Discover

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​Proveres provides a full analysis of your business and operations, and will help identify which projects and work your business does that can be claimed towards the R&D tax credit.

Quantify​

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Proveres reviews expense-related data from your business and identifies what will qualify for the R&D tax credit.

Qualify​

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Proveres gathers relevant information and documentation into the qualifications for each R&D tax credit claim.

Validate & Support​

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When the credits to be claimed have been calculated and validated, Proveres assists your business to facilitate a smooth tax filing process.

Annual Reviews to Maximize Credits​

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In addition to discovering existing R&D tax credits your Biomedical business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Biomedical Activities That May Be Eligible for R&D Tax Credits (but not limited to):

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  • Developing and testing new pharmaceuticals, medical devices, and drug delivery systems

  • Designing and manufacturing prototype medical devices, drug packaging apparatuses, and biotechnological equipment

  • Developing and testing new therapies, biologics, and medical compounds

  • Enhancing existing products to improve effectiveness, minimize side effects, and increase shelf life

  • Conducting clinical tests to meet regulatory requirements before commercialization

  • Direct research activities, including quality testing, data collection, and regulatory compliance work

  • Developing new manufacturing processes and associated technologies in the Biomedical sector

  • Creating hardware and software systems for research and clinical development

  • Finding new applications for existing medical products

  • Designing innovative production systems and manufacturing techniques

  • Developing technologies to comply with regulatory requirements and reduce pharmaceutical production costs

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If your business engages in these activities, it's likely eligible for R&D tax credits in the Biomedical sector. Working with a professional R&D tax credit advisor like Proveres can help you determine your eligibility and maximize this research and development tax incentive.

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Additionally, if you have employees or 3rd-party contractors with the following job titles, you may qualify for R&D tax credits:
 

  • Biomedical and Environmental Engineers

  • Analytical Chemists and Scientists

  • Lead Drug Product Engineers

  • Mechanical and Process Engineers

  • Quality Assurance and Control Professionals

  • Manufacturing Specialists

  • Clinical Researchers

  • Software Engineers

  • Environmental Scientists

  • Sales, Technical Support, and Business Management

  • Project and Integration Managers

  • Research Scientists

  • Validation Engineers

  • Epidemiologists

  • Microbiologists and R&D Scientists

 

To learn more about the R&D Tax Credit for Biomedical, and whether your business qualifies, please contact us

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