What Has Changed With The R&D Tax Credit?

By Yair Holtzman

According to the Congressional Budget Office, the pharmaceutical industry devoted $83 billion to R&D expenditures in 2019.

Those expenditures covered a variety of activities, including discovering and testing new drugs, genome sequencing developing incremental innovations such as product extensions, and clinical testing for safety-monitoring or marketing purposes. The amount spent is about 10 times what the industry spent per year in the 1980s, after adjusting for the effects of inflation. Below is a small sample of potentially qualifying projects and activities driving the industry in 2022.