The life science industry is fast paced and full of innovation. In order to remain competitive, life science businesses are pouring capital and resources to develop cutting-edge technology, whether it be new medicines, diagnostic tools, or biotechnologies. Many of these companies fail to capture the R&D credit or do not capture all the costs entitled to the company. For example, businesses might not include costs outside of the R&D Lab, such as prototyping or outside testing costs. With the help of a knowledgeable advisor, these companies can recoup many of these costs through local, state, and federal incentives.

The R&D Tax Credit can allow life science firms to increase cash flow, invest in additional projects, and continue to grow their business. Examples of activities that could qualify for the life science industry include:

  • Developing medical device prototypes for functional, safety, and performance testing and evaluation.
  • Developing production processes for new products, including FDA qualification, validation, and clinical testing during Phases I-IV of clinical trials.
  • Developing new product and process assays.
  • Designing and developing certain hardware and software systems for medical device equipment.
  • Developing product improvements to increase the shelf life or stability of a formulation.
  • Undertaking a product reformulation based upon dosage requirements.

For example, Company ABC is developing a new and improved medical kits for efficient medicinal delivery. For these kits, developers spent significant time to evaluate alternative materials and product design for durability and patient/doctor ease of use. Furthermore, Company ABC developed prototypes and tested the kits for performance and quality. In this case Company ABC can capture development costs from both the development of the new kits and maybe for the costs of the prototypes as well.

Working directly with clients and their CPAs, TRCG has delivered R&D services to a wide spectrum of life science companies. Through industry expertise, TRCG can quickly understand your company processes, identify potential qualifying projects, and help you capture valuable tax credits.