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.