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PHARMACEUTICAL DEVELOPMENT

The development of pharmaceutical drugs and therapies is among the most challenging activities of any category for numerous reasons. For those directly developing new pharmaceuticals, there are major scientific, developmental, testing, and regulatory burdens replete through the process. For those supporting the activity, there is major competition from numerous highly qualified facilities for a limited number of development dollars.

In any instance, directly developing or assisting others to develop pharmaceuticals, will likely to generate a robust credit:

  • Healthcare Developments

    For the development of advanced chemistries, none are more carefully evaluated than those relating to human health. The development and testing procedures for this are generally known to be the most rigidly managed of any industry. This level of scrutiny is generally positive for the R&D Credit.

  • Material and procedural selection

    The manner in which development is approached can be as significant as the development itself. Each aspect of the development will change the way in which the credit is structured.

  • Laboratory to Large-scale Manufacturing

    The scaling of manufacturing has a completely different set of issues. At a small scale, reactions can be more carefully controlled, procedures that do not translate perfectly when producing pounds or tons of material at once. Accordingly, the scaling of a product is equally as important as its development.

Case Study

Double-blind

Patient Security: For pharmaceutical companies, the most significant credit issue isn't qualification, it's security of patient files. To ensure confidentiality, InnovaTax offers a double-blind system that associate medical data with resulting credits with a digital ‘key,' reducing risk.

Medical Manufacturing

The pharmaceutical industry is typically filled with research. Medical Co. was an excellent example, which developed and fabricated surgical devices for new procedures. Qualifying efforts were found at every stage: generating the initial concept, translating that concept into a device, developing practical fabrication tools, implementing surgical procedures, performing field studies, post-operative evaluation, etc… In fact, qualification wasn't the primary issue, it was an exclusion called ‘funded research,' which directs the credit to the party most responsible for its development. After a careful review of materials, Medical Co. received a sizable credit for its role.

Credit Estimator

Credit Estimator
* Industry Averages are historical IRS averages, representative of actual results compiled by the IRS (based industry NAICS code.)  Estimates of QREs and credits are approximations, and actual results will vary based on actual client costs and qualifications.

Disclaimer

This is an estimation only and should not be used on your taxes.  All conclusions involved in this calculation are based on the accuracy of the information provided by the end user.  This calculation utilizes historic information and statistical analysis to determine an industry average combined with a mathematically derived constant for the calculation of State and Federal Benefits.  InnovaTAX cannot and will not warranty the results of this estimation and any party using the estimated figure in place of a genuine calculation does so at its own harm and with full warning from EEPB InnovaTAX that such action is improper.  Further, the estimator developed by InnovaTAX is the intellectual property of InnovaTAX and cannot be used in any other manner than on this website or by InnovaTAX employees.  Due to the fact that the information contained within the calculator is based on industry averages, the results will vary from situation to situation and might be above or below the stated figure.  Consult your tax advisor or EEPB InnovaTAX for further information.

Definitions

The information used for the calculation of this credit is based on the Internal Revenue Code and Regulations.  EEPB InnovaTAX gathered information from State legislatures and taxing authorities for each state and relied upon the information provided by the state to develop this estimator.  The definitions of activities that qualify for tax credit are based on the definitions set out in the Internal Revenue Code and by each state authority.

EEPB InnovaTAX maintains this website on a regular basis and makes its best effort to update the estimator but does not warrant the calculations involved in the estimator to contain current law at all times.

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EEPB InnovaTax, LLC is a State of Texas registered tax adviser located in Houston, TX.

EEPB InnovaTax specializes in Research and Development income tax consultation; Tax advisory services; Tax and taxation planning advice, information and consultancy services; and Tax consultation.

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