R&D Tax Credit for Pharmaceuticals

R&D Tax Credits for Pharmaceuticals

What is the R&D Tax Credit for Pharmaceuticals?

The R&D tax credit for Pharmaceuticals is a unique tax incentive that benefits Pharma businesses that develop new pharmaceuticals, biologics, delivery systems, diagnostics, and devices. The Pharma R&D Tax Credits are also available to companies who develop new products, processes, formulas, or techniques that improve functionality, reliability, quality, or performance. 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 pharmaceutical businesses may be eligible for the R&D tax credits and not even realize it. Does your pharmaceutical business qualify for the R&D tax credit? The IRS has 4 guidelines in place to help businesses understand if they may qualify:

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

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

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

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

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

What can the R&D Tax Credits do for Pharmaceutical 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

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

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

Qualify

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

Validate & Support

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

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

Some examples include, but are not limited to Research, Development, Design, Experimentation, or Testing of any of the following industries:

Clinical Trials
Vaccines
Pharmaceutical Development & Reformulation
Drug Compounding
Generic Drug Development
Orphan Drug Development
Reagent Development
Packaging
Medical Devices
Medical Equipment Manufacturers
Analytic Research Labs

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

Scientists (Analytical, Formulations, etc.)
Clinical Trial Managers
QA/QC Employees
Chemists (Process, Manufacturing, etc.)
Chemistry Manufacturing and Controls (CMC) Employees
Technicians (Lab, Maintenance, Production, etc.)
Pharmaceutical Development Employees or Pharma Operations Employees
R&D Lab & Drug Discovery Employees
Discovery Biology Specialists
Pharmacology Employees
Clinical Support & Preclinical Specialists
Research & Formulations Development Employees
Regulatory Operations Employees
Materials Management Employees
Biometrics Employees
AI or AR/VR Employees

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