R&D Tax Credit for Life Science Industries

The Life Science market is a fantastic market segment for companies to explore the benefit of the R&D tax credit.  Companies in this market space are routinely developing unique solutions used as part of lab automation equipment, workflow management software, reagents, and consumable components that are used for diagnostic testing.  In addition to OEM’s that design and sell lab diagnostic testing equipment and accompanying assays, there are a wide range of ancillary companies that support the Life Science market by providing complex machining of prototype components and custom manufacturing equipment and manufacturing process design services.  The value of the R&D credit can not only deliver a positive financial benefit directly to companies selling products and services into the global Life Science market, but can also provide the same financial benefit to the companies that support the industry.

Qualified Research Activities for Companies in the Life Science Market:

  • Development of production processes for protein purification
  • Evaluation and modification of components to optimize manufacturability
  • Use of CAD software such as Solidworks
  • Testing and validation of prototypes and first articles
  • Development and modification of fluidic sub-assemblies
  • Development of automated production cells
  • Development of custom tooling, fixtures, and dies
  • Development of reagents used for diagnostic tests and associated regulatory approvals
  • Development of microfluidic or ‘Lab on a Chip’ consumables
  • Development of sample detection and measurement technologies
  • CNC machine programming
  • Quality assurance and testing protocol development activities
  • Design and Development of system software
  • Design and development of LIMS software

Take Advantage of the R&D Tax Credit with Source Advisors

The R&D tax credit can help a wide variety of businesses offset and reduce their income tax liability, in addition to providing many other benefits. At Source Advisors, we can help assess your company’s federal R&D tax credit opportunity and also determine any state R&D tax credit availability.  Most states offer R&D tax credits as well with many of them being more lucrative than the federal credit. Our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can then help drive overall growth.