Life Sciences R&D Tax Credits: Common Pitfalls and Recent Tax Change

Continuing the R&D tax credit series, this episode of the Healthcare & Life Sciences Podcast covers the complexity around qualifying opportunities in digital health and AI-enabled medical technologies. Hosts Adam Hunter, Assurance Services Partner, and Carolyn Smith Driscoll, Tax Credits & Incentives Advisory, discuss common mistakes that can reduce or jeopardize credits, key documentation and audit readiness considerations.

Key Topics

• How software as a medical device (SaMD), AI, and digital health innovations can create significant R&D tax credit opportunities. 
• Common pitfalls that lead companies to underclaim credits or create audit challenges, including insufficient documentation and funded research issues. 
• Which costs may qualify for the credit, including employee wages, supplies, and certain contract research expenses. 
• The importance of building audit-ready documentation and tracking activities at the business component level. 
• Recent legislative changes and planning opportunities that could improve cash flow and enhance the value of R&D investments.

Join the conversation for these insights and to learn more about the impact of recent legislative changes on R&D tax treatment and cash flow planning. 

In the first episode of the Healthcare & Life Sciences Podcast, hosts Adam Hunter, Assurance[HR1.1] Services Partner, and Carolyn Smith Driscoll, Tax Credits & Incentives Advisory, will explore the many ways R&D tax credits impact the life sciences. 

In this first episode, Adam and Carolyn discuss what qualifies as R&D, where organizations commonly miss opportunities, and how proper documentation can help maximize credits while reducing audit risk. 

Tune in to learn more about: 

• Understanding the fundamentals of R&D tax credits for life sciences companies. 
• Identifying qualifying activities across pharmaceuticals, biotech, medical devices, and diagnostics. 
• Navigating clinical trial and research-related credit opportunities. 
• Recognizing often-overlooked opportunities in process development and manufacturing scale-up. 
• Strengthening documentation to support claims and prepare for potential audits.

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