R&D Tax Credits for the Healthcare Industry

Capitalizing on evolving patient care through past, present and future innovation.

R&D is likely to be a continued priority for the healthcare industry, as organizations in the space work to address the emerging needs of the aging population, respond to trends in telehealth and value-based care and fend off competition from new entrants, like Amazon, which has signaled that healthcare is a key priority for growth.

If your organization has worked to develop a new or improved product, process or software platform, you may be eligible for federal and state tax R&D tax credits equaling up to 25% of qualified spending. If your company is financing such activities outside of the U.S., the incentives may be even greater.

You can benefit from R&D tax credits even if you’re not paying income tax: many states will pay you the value of your credit or allow you to sell or transfer it for cash, and state and federal credits may be carried back to earlier—and forwarded to later—tax years.
 

Is Your Healthcare Organization Eligible?

Your company may qualify for R&D credits if you pay the following types of employees or contractors to develop or improve your product, process or technology:

 

Which Activities Qualify for the R&D Tax Credit?

 

Your efforts do not have to succeed to qualify for the R&D tax credit. And you don’t have to be trying to revolutionize the industry to qualify. Attempts to develop incremental, evolutionary product and process improvements are eligible, as well.

For more information on calculating and claiming the R&D Tax Credit, read our R&D Tax Credit FAQ.