Clinical Research R&D Credit

Many physicians conducting clinical trials are unaware that their practice is eligible for the R&D Tax Credit. There's a common misconception that this incentive is only for the large pharmaceutical sponsors who develop the drug. In reality, the critical, hands-on research performed by clinical investigators and their staff is a vital part of the R&D process and is often eligible.

Your practice is actively resolving “technical uncertainty” every day. You're not just administering treatment; you're executing a complex scientific protocol to determine a new product's safety and effectiveness in a real-world patient population. The government rewards this systematic process of testing, data collection, and analysis.

Qualifying activities for a medical practice are centered on the execution of the clinical trial:

Study Startup & Protocol Implementation
This involves the technical planning required before the first patient is enrolled.

Analyzing a trial protocol to determine the feasibility of conducting the study.
Developing new internal processes and procedures to ensure compliance with the protocol.
Training clinical staff on novel procedures or the mechanism of action of an investigational drug.

Patient Screening & Administration
This goes beyond routine care into a rigorous experimental process.

Developing new or improved screening methods to identify patients who meet complex inclusion/exclusion criteria.
Administering an investigational product and documenting patient responses and adverse events.
Testing and refining methods for patient monitoring throughout the trial.

Data Collection & Analysis
The meticulous data management required for clinical trials is a core R&D function.

Developing more efficient or accurate methods for capturing and documenting patient data.
Implementing new software or technologies to manage clinical trial information.
Performing analysis of site-specific data to evaluate patient outcomes and contribute to the study's findings.

If your practice participates in clinical trials, you are not just a healthcare provider—you are an active researcher. This vital work involves qualifying R&D activities that could lead to significant tax savings.