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Originally aired on March 25 , 2026<\/strong><\/p>\n\n\n\n In this webinar replay, our specialists explore how companies across industries \u2014with a focus on medical and pharmaceutical organizations \u2014 can leverage the U.S. R&D Tax Credit to turn innovation into meaningful financial benefit.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n How the U.S. R&D Tax Credit applies to AI, robotics, and IoT development in 2026 Which technical activities typically qualify, from model development and simulation to firmware, edge computing, and system integration<\/p><\/div><\/div> Guidance on how to properly document qualifying activities to support defensible claims A focused perspective on how the credit applies within the medical and pharmaceutical sector, where experimentation is foundational, not occasional<\/p><\/div><\/div><\/div><\/div><\/div>\n\n<\/section>\n\n\n The responses to the questions asked during the webinar were prepared by our experts.<\/p>\n\n\n\n These responses are provided for informational purposes only and do not constitute legal, tax, or financial advice. For any questions related to your specific situation or that of your organization, please contact us directly.<\/p>\n\n\n\n <\/p>\n\n\n\n Yes.<\/strong> For the standard (income tax) credit: No.<\/strong> For the payroll tax credit: Yes.<\/strong> <\/p>\n\n\n\n Must have less than $5 million in gross receipts<\/strong><\/p>\n\n\n\n Applies only during the first 5 years of eligibility<\/strong><\/p>\n\n\n\n Yes, in most cases.<\/strong> You retain financial risk<\/strong><\/p>\n\n\n\n You retain intellectual property (IP) rights<\/strong><\/p>\n\n\n\n Typically, up to 65% of those costs<\/strong> can be included.<\/p>\n\n\n\n Generally, yes.<\/strong>What you’ll learn<\/strong><\/mark><\/em><\/h2>\n\n\n\n
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\n<\/p><\/div><\/div>Q&A<\/strong><\/mark><\/em><\/h2>\n\n\n\n
If we test a new process but it only improves things slightly, does that still count as R&D?<\/strong><\/h4>\n\n\n\n
There is no minimum threshold for improvement. Even small, incremental changes qualify. In fact, the R&D Tax Credit is designed to reward continuous improvement , meaning incremental R&D efforts can increase your credit over time.<\/p>\n\n\n\nIs there a limit based on revenue or cash flow?<\/strong><\/h4>\n\n\n\n
There is no cap based on company size, revenue, or cash flow.<\/p>\n\n\n\nWe outsource work to CROs \u2014 does that qualify?<\/strong><\/h4>\n\n\n\n
Outsourced R&D can qualify as a contract research expense<\/strong> if:<\/p>\n\n\n\nCan payroll costs still qualify if they are already deducted as a business expense?<\/strong><\/h4>\n\n\n\n
Wages used for R&D activities can still be included in the credit calculation, even if they are already treated as business expenses.
(Final confirmation should be reviewed with a tax specialist based on your situation.<\/em>)<\/p>\n\n\n\n