Medical instruments are at the forefront of healthcare innovation but often present unique challenges in terms of R&D tax credits. Dive into this case study to explore how Source Advisors transformed these challenges into financial assets for a contract manufacturing company specialized in medical instruments.
This company is a contract manufacturer focusing on the design and development of production processes for highly specialized medical instruments. Their expertise lies in fulfilling customer designs that are innovative and have never been manufactured before, meeting stringent quality and regulatory requirements.
Medical instruments must comply with rigorous regulations and standards, making the design and production process extremely complex and costly. This company develops unique manufacturing processes, tooling, and fixtures to produce sample prototypes for customer validation—all without charging the client.
The company’s R&D efforts span from initial brainstorming sessions to detailed design phases and numerous trial runs. They utilize advanced software like SolidWorks for design, simulation, and feasibility studies. Prototypes undergo destructive testing including tensile and compression tests, with multiple iterations to ensure quality and functionality.
Source Advisors performed an analysis of the company’s activities that qualified for R&D tax credits.
We reviewed all stages of their manufacturing process, identifying qualifying R&D activities, from conceptualization to the destructive testing phase.
The company's financial records were scrutinized to identify expenditures tied to R&D activities, which were then translated into potential tax credits.
We ensured that all R&D activities met federal and state tax requirements, including stringent documentation for audit-proof claims.
Don’t let potential R&D tax credits go unclaimed. Your next innovation might just be waiting for that financial push.
Contact Source Advisors today to explore how we can unlock tax advantages for your company.