Life Sciences organizations including pharmaceutical, biotechnology, biomedical, agricultural, and medical device companies, are inherently innovative and are among the top candidates for claiming R&D tax credits. Often the upfront investments made
to create new drugs, chemical compounds, or medical devices are significant and can generate substantial opportunities to recoup costs in the form of R&D tax credits.
In addition to the investment in its employees, Life Sciences companies – especially in early stages – may leverage Contract Research Organizations (“CROs”) that perform research on behalf of the company. A portion of these costs may also be qualified and provide companies with a larger pool of potentially qualified dollars to consider when
determining the value of its research credits.
Rewarding companies for these types of investments offers a way to refuel the cycle of innovation, generating capital for companies to hire additional technical personnel and expand its development capabilities.