R&D Tax Credit Solutions for Biotechnology & Pharmaceutical Companies

Since the inception of the R&D Tax Credit, pharmaceutical companies have been one of the largest credit claimants. The activities required to take a new drug from laboratory concept to fully approved commercial product naturally require intense experimentation in highly scientific areas. However, with complicated patent structures and expensive R&D pipelines, pharmaceutical investment in qualified R&D activities had declined.

In recent years, there has been a renewed enthusiasm for exploratory R&D in the pharmaceutical & biotechnology sector. Emerging discoveries surrounding regenerative medicine, biologics, therapeutics, and preventative medicine have produced an increase in companies seeking to bring new products to market. These efforts naturally require biotechnology and life sciences companies to engage in activities that meet the four-part requirements of the R&D Tax Credit. Qualified research in this sector is compounded when companies attempt to use advanced analytics and software-based technologies in new product applications.

Biotechnology & Pharmaceutical companies performing the following activities may be eligible for the R&D Credit:

Investing in scientific research to develop a framework for new products
Developing formulations for new products
Improving the performance of existing products
Genetics Research
Performing internal or external laboratory testing on new products
Developing or improving manufacturing and production processes
Investing in bioinformatics development
Attempting to utilize software and analytics in product development
Regenerative medicine development
Therapeutics product development
Nutraceutical product development
In-vivo testing
Clinical R&D processes
FDA approval
Testing new techniques and methods for applying new medical technologies

The activities above are an abridged list of the many activities companies in the biotechnology and pharmaceutical industry perform. Companies may claim credits for expenses associated with wages, third-party lab testing, consultants, lab supplies, and raw materials toward the R&D Credit. For a free analysis of your potential R&D Credit benefit, please contact the team at Alternate Tax Solutions or visit our R&D Credit Estimator. See what our clients had to say about the savings Alternate Tax Solutions helped their business achieve. “Join the many industries taking advantage of revenue opportunities through applied tax strategy. Contact Alternate Tax Solutions today!”