Research and Development Tax Incentives for the Medical Equipment Industry

Manufacturing

Medical Device Manufacturer

Research and Development Tax Incentives for the Medical Equipment Industry

Many companies in the medical equipment development industry are not aware that the government offers generous research and development (R&D) incentive programs. Even companies that are aware often fail to capture the full extent of R&D tax credits that they are entitled. For example, many businesses may be capturing relevant expenses from their R&D cost centers, but not all qualifying R&D activities take place in traditional R&D departments. In many medical equipment development companies, prototyping, process development, and testing occur in the plant or on the shop floor and thus may be overlooked for purposes of the R&D Tax Credit. Additionally, today’s medical device manufacturers may not realize that the traditional notions of R&D may cause them to limit qualified research expenditures to activities associated with new product and invention developments. However, in many cases, manufacturers spend a considerable amount of time and effort to develop or improve product designs that achieve optimized manufacturing process performance.

Examples of activities and innovations eligible for R&D tax incentives include the following

  • Conducting new product development and design
  • Developing engineering drawings and specifications
  • Performing CAD modeling
  • Developing second-generation or improved products
  • Tooling and equipment fixture design and development
  • Developing unique computer numerical control programs
  • Designing innovative programmable logic controllers
  • Developing equipment that satisfies increasing regulatory requirements
  • Programming software source code for firmware
  • Compiling and testing source code for firmware
  • Conducting unit, integration, functional, and performance testing
  • Conducting clinical tests to satisfy government regulatory requirements prior to commercialization
  • Conducting tests to satisfy foreign regulatory requirements
  • Development of new assays and testing methods/protocols
  • Generating prototypes and first articles of new products for testing and validation
  • Implementing¬†automation processes or robotics
  • Designing electrical equipment

alliantgroup’s Medical Equipment Industry Specialization Team

To better serve medical equipment manufactures, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in this industry. alliantgroup’s Medical Equipment Industry Specialization Group employs several individuals who have educational backgrounds and practical experience within the disciplines of manufacturing engineering, industrial engineering, mechanical engineering, electrical engineering, and metallurgy. This group has qualified and quantified credits for firms ranging from small, privately owned companies to large, multi-national, publicly traded companies.