Pharmaceutical Development & Reformulation R&D Tax Credits

If your firm participates in finding novel pharmacological targets and developing biologics and small compounds, you probably invest large sums in in-vitro, pre-clinical, and clinical research. Luckily, such and similar operations throughout the drug development process are regarded as R&D. In other words; your company may be able to recoup a portion of those costs using the Pharmaceutical Development and Reformulation research and development tax credit.

The US government and individual states provide this tax incentive to inspire businesses to conduct more research. How much of your overall QREs you can offset will depend on the specific state, but the maximum amount is 22% of the claim period expenses.

Qualifying Costs and Activities

Most pharmaceutical firms instinctively understand that creating new medications or medical products is likely acceptable for a Pharmaceutical Development and Reformulation R&D tax credit. However, not as many are aware of other qualifying activities, such as:

• Creating and introducing better manufacturing processes;

• Making experimental lots for clinical trials and qualifications;

• Performing pharmacodynamic analyses on a test substance;

• Using AI and machine learning to discover new medicines;

• Adapting existing assays to develop new or better testing methods;

• Examining the processes of downstream effects, action, etc.;

• Assembling the evidence-based data required for FDA or other regulatory agency clearance.

Qualifying expenditures you can partially recoup using the R&D credit include supplies, materials, and salaries for employees and subcontractors. However, the benefit extends only to the following job positions: research and analytical scientists, cell culture technicians, C-suite, postdoctoral research fellows, clinical pharmacologists, machine learning software developers, pharmacometrics managers, and contract research personnel.

Contact Endeavor Advisors to examine your claim for the R&D tax credit in the Pharmaceutical Development and Reformulation industry. Thanks to our innovative pricing structure, you won’t have to make payment until your claim is approved.

FAQs

What kind of companies can apply?

Pharmaceutical companies that conduct qualifying research activities.

What data do I need to calculate credit?

Claim period gross receipts.

What information do I need to provide?

General ledger expense detail, payroll records, project notes, project lists, emails, purchase orders, and other documents regarding QREs for the claiming period.

Is credit carryforward an option?

Yes, up to twenty years.