UPCOMING LIVE WEBINAR

The R&D Tax Credit in the Biotechnology Industry

Date & Time: Monday, December 1, 2025 at 1:00 pm CT   |   Duration: 60 Minutes

R&D Tax Credits: 80% of companies that qualify don’t claim!  Every year, companies throw away thousands or even hundreds of thousands of dollars because of simple misunderstandings surrounding the research and development (R&D) tax credit. Amendment claims can go back three years and in most situations produce sizable refunds for past R&D activities.

WEBINAR DETAILS

Title: The R&D Tax Credit in the Biotechnology Industry

Date: Monday, December 1, 2025

Time: 1:00 pm – 2:00 pm Central Time

Cost: FREE

Learning objectives include:

  • An overview of R&D Tax Credits
  • Identify Qualifying Research Activities
  • Define the 4-Part Test
  • How to substantiate activities through documentation
  • Identify Qualifying Research Expenses

CE/CPE credits:          Worth one hour

Knowledge Level:      Basic*

Field of Study:            Taxation

Why Choose Us

  1. We are certified to the  ISO31000:2009 Risk Management standard
  2. We are NASBA certified and provide daily CPE credits to CPAs, CFPs, and SMBs
  3. We are an IRS approved Continuing Education provider for CPAs and Enrolled Agents
  4. We have an rated A+ with the Better Businese Beureau
  5. Our R&D tax audit insurance product, creditARMOR is one of the most cost effective tools on the market
  6. Our AI language model, TaxTrex prepares R&D tax credit claims in less than 90 minutes.
  7. Each R&D tax claims prepared by Swanson Reed undergo a six eye review by a Qualified Engineer, Scientist and Enrolled Agent or CPA.

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Small businesses in the biotechnology industry can significantly benefit from the Research and Development tax credit by reducing their tax liability through qualified research expenses. For startups with little or no income tax liability, the Research and Development payroll tax offset offers a valuable alternative—allowing them to apply up to $500,000 of the credit annually against payroll taxes. This helps ease early-stage financial strain by directly offsetting a portion of payroll costs, freeing up cash to reinvest in research, development, and innovation. It’s a crucial incentive that supports biotech startups in scaling breakthroughs while managing tight budgets.

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Biotechnology Case Study

American Animal Nutrition Organization (AANO) focuses on natural, non-antibiotic solutions for animal health. In 2012, AANO began an eight-year study to ensure American beef’s quality, environmental responsibility, safety, and nutrition. Their hypothesis was that understanding gastrointestinal metabolism could improve feed intake, enhance efficiency, and reduce antibiotic reliance. The initial research involved identifying factors regulating cow feed intake and developing a suitable low-temperature, high-moisture pellet. AANO continuously built upon new knowledge gained from each experimental stage. After the first year, AANO assessed its R&D activities against the “Four-Part Test” to determine eligibility for the Research and Experimentation Tax Credit, then registered specific expenditures with the IRS. These included designing and developing prototypes to prove their hypothesis, which involved identifying substances impacting feed intake, validating a cow preference model based on chemosensory properties, determining the model’s statistical sensitivity, and finding optimal feed processing conditions. They also conducted trials and analyzed data for reproducible results, developed and tested feed intake and efficiency enhancers, performed background research to identify knowledge gaps, and engaged in ongoing analysis of customer feedback to improve prototype design, which involved continuous testing, development, and commercial analysis. Qualified research for the R&D Credit aims to develop new or improved business components like products or processes. The “Four-Part Test” requires a permitted purpose (new or improved functionality), elimination of uncertainty, a systematic process of experimentation, and a technological basis in hard science. AANO maintained extensive documentation, including background research, project records, testing protocols, results, resource logs, and tax invoices, to demonstrate compliance for potential IRS audits.  Click here to learn more.


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