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R&D Tax Credits for Healthcare Products

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What is the R&D Tax Credit for Healthcare Products?

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The R&D tax credit for Healthcare Products is a unique tax incentive that benefits businesses in this industry. It supports companies that engage in activities such as the development of innovative healthcare products, the improvement of healthcare equipment, testing and implementing novel healthcare technologies, ensuring compliance with regulatory standards, and enhancing patient care solutions. The R&D tax credit reduces your federal tax liability dollar-for-dollar and allows businesses an immediate source of liquid assets to get projects off to an immediate start. Businesses are also able to claim the R&D tax credits retroactively for up to 3 or 4 years for work that has already been completed.

 

Many healthcare product businesses may be eligible for the R&D tax credits and not even realize it.  Does your business qualify for the R&D tax credit?  The IRS has 4 guidelines in place to help businesses understand if they may qualify:
 

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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 you answered yes to these 4 questions, your healthcare products business may be eligible to claim these beneficial R&D tax credits.  Proveres is here to help you figure out the details.

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What can the R&D Tax Credits do for Healthcare Products businesses?

 

  • 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 Healthcare Products business qualifies for, Proveres also helps your business identify and implement procedural changes to unlock future R&D tax credits.

Several qualifying business activities for the R&D tax credit include, but are not limited to, research, development, design, experimentation, or testing in the following areas:

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  • Research and development of new healthcare products, including medical devices, pharmaceuticals, and biotechnology.

  • Clinical trials and studies to assess the safety and efficacy of healthcare products.

  • Prototyping and testing of medical devices and pharmaceuticals.

  • Design and development of healthcare software and electronic health record (EHR) systems.

  • Regulatory compliance efforts to meet strict FDA and other regulatory standards.

  • Biotechnological advancements, including genetic research and the development of novel therapies.

  • Process improvements, such as the development of more efficient manufacturing methods.

  • Research and experimentation to enhance the quality, safety, and effectiveness of healthcare products.

  • Data analysis and informatics to improve healthcare data management and patient care.

  • Continuous advancements in healthcare technology, including artificial intelligence, virtual reality, and augmented reality applications.

 

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

  • Software Engineers

  • Software Developers

  • Software Architects

  • Applications Engineers

  • Hardware Engineers

  • Engineering Technicians

  • Systems Analysts

  • Network Engineers

  • Database Architects

  • Analytics Engineers

  • Product Engineers

  • QA/QC Specialists

  • Lab/Maintenance Technicians

  • R&D Laboratory Associates

  • Clinical Support Specialists

  • Pharmacology Associates

  • Research Associates

  • Drug Safety Specialists

  • Research Informatics Specialists

  • Discovery Biology Specialists

  • Regulatory Operations Associates

  • Laboratory Managers

  • Artificial Intelligence Specialists

  • Virtual Reality Specialists

  • Augmented Reality Specialists

 

It's essential to work with tax professionals or specialists experienced in R&D tax credits, and Proveres is the top choice to help you determine which specific activities within your business qualify and ensure proper documentation to support your claims. Additionally, tax laws and regulations may change, so it's crucial to stay updated on the latest guidelines and requirements for claiming these credits. To learn more about the R&D Tax Credit for Healthcare Products and whether your business qualifies, please contact us. Proveres is the definitive advisory firm to navigate your R&D tax credit journey.

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