Medical Equipment R&D Credit

The R&D Tax Credit is a powerful incentive designed specifically for the work medical device and equipment companies do every day. It rewards the rigorous engineering and scientific problem-solving required to develop new products, turning your firm's innovation into a significant tax refund.

Eligibility doesn’t require a "new-to-the-world" surgical robot. Instead, the credit rewards your process of systematic trial-and-error to arrive at a final, validated product. If your team experimented with different materials, mechanical designs, or software algorithms to resolve technical uncertainty and meet specific performance, safety, and regulatory goals, you were likely performing qualifying R&D.

Qualifying activities are present throughout the entire product development lifecycle:

Prototyping & Materials Science
This foundational stage involves engineering and testing the physical components.

Experimenting with new materials (e.g., polymers, alloys, or composites) to achieve specific biocompatibility, durability, or sterilization properties.
Designing, building, and testing multiple iterations of prototypes to resolve technical challenges in form, fit, and function.
Developing and testing new molding processes, micro-fabrication techniques, or tooling required to manufacture a complex component.

Electronic & Software Engineering
This phase focuses on developing the "brains" of the device to be safe, reliable, and effective.

Designing, programming, and testing the embedded firmware or software that controls the device's logic and user interface.
Engineering and testing new sensor technologies or data acquisition systems to improve diagnostic accuracy or patient monitoring.
Developing and testing proprietary software algorithms to process signals, analyze data, or create new diagnostic visualizations.

Validation & Process Improvement
The technical work required to meet and validate strict FDA, quality, and manufacturing standards.

Developing new, in-house testing protocols and equipment to validate a device's performance, safety, or reliability (e.g., fatigue, electrical safety).
Designing and implementing new automated manufacturing or assembly processes to ensure product consistency and meet quality control tolerances.
Experimenting with new sterilization methods (e.g., E-beam, gamma) on a new device and testing for material degradation or functional impact.

From the first CAD model to the final validation report, the medical device development process is filled with qualifying activities that can translate into valuable tax savings.