R&D Tax Incentive inspiring ground-breaking research

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3D printing has revolutionized hundreds of industries and has been particularly notable in the biomedical field. The technology is being used to make prosthetic limbs, replacements for bones, tendons, functional organ pieces and living human tissue for the testing and development of new drugs.

In 2007, Keith Murphy and Professor Gabor Forgacs from the University of Missouri founded the company Organovo. Organovo designs and prints functional human tissue for disease modelling and toxicology, human body implants and drug research and testing. The company also provides 3D printed tissue to academic facilities allowing future medics to get better training.

With the 3D printing market becoming increasingly more popular to invest into, particularly with the increase of government incentives for research and development, companies like Organovo can significantly benefit from substantial tax credits.

The federal R&D Tax Credit allows a credit of eligible spending for new and improved product and processes if qualified research meets the following four criteria:

  • New or improved products, processes or software
  • Technological in nature
  • Elimination of uncertainty
  • Process of experimentation

In 2015 the R&D Tax Credit became permanent, allowing the claiming of employee wages, cost of supplies, cost of testing, contract research expenses and costs associated with developing a patent. In 2016 start-up businesses could begin to utilize up to $250,000 credit in payroll taxes, which is particularly beneficial for 3D bio printing companies like Organovo, due to the long R&D time period of the projects.

The R&D tax incentive scheme has allowed for some ground breaking research achievements which will significantly benefit the wellbeing and treatment for people as well as improving future research. Organovo have been able to produce a 3D liver, named the ExVive Human Liver, which is being used to study predictive liver tissue-specific toxicity. The company has also created the ExVive Human Kidney which is being used to study nephrotoxicity due to drug responses. Additionally, the Missouri founded research company is also working on 3D printed tissue to be used as a source of therapy for patients with damage and disease to natural tissue.

Such ground-breaking findings pin point the significance of R&D tax credits in supporting innovation and development of revolutionary technologies. If you would like to find out more about the R&D incentive and whether your company may qualify for a tax credit, contact a Swanson Reed R&D tax specialist today, we look forward to speaking with you.

Top States for Doing Business 2016

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How does your state rank for doing business? CNBC ranked all 50 states for business using a range of publicly available data.  They used a points-based system for each of the 10 categories of competitiveness.

Here are the results:

Workforce

Rating based on education level of the workforce, the numbers of available employees, and the states’ demonstrated abilities to retain college-educated workers.

Top 5

  1. Colorado
  2. Massachusetts
  3. Virginia
  4. North Dakota
  5. Arizona

Bottom 5

  1. Maine
  2. Missouri
  3. Hawaii
  4. Vermont
  5. Kentucky

Cost of Doing Business

Rating based on the competitiveness of each state’s tax climate, as well as state-sponsored incentives that can lower the cost of doing business. Utility costs can add up to a huge expense for business, and they vary widely by state. Also considered was the cost of wages, as well as rental costs for office and industrial space.

Top 5

  1. Indiana
  2. Iowa
  3. Mississippi
  4. South Dakota
  5. Kentucky

Bottom 5

  1. Hawaii
  2. California
  3. Maryland
  4. Connecticut
  5. Massachusetts

Infrastructure

Rating based on the vitality of each state’s transportation system by the value of goods shipped by air, waterways, roads and rail. The availability of air travel in each state, the quality of the roads and bridges, and the time it takes to commute to work was taken into account, as was the condition of each state’s drinking water and wastewater systems.

Top 5

  1. Indiana
  2. Tennessee/Texas
  3. Tennessee/Texas
  4. Georgia
  5. Minnesota

Bottom 5

  1. Rhode Island
  2. New Hampshire
  3. Maine
  4. Connecticut
  5. Hawaii

Economy

Rating based on economic growth, job creation, consumer spending, and the health of the residential real estate market. Each state’s fiscal health was measured by looking at its credit ratings and outlook, as well as its overall budget picture. Also considered was the number of major corporations headquartered in each state.

Top 5

  1. Texas
  2. Colorado
  3. Utah
  4. Florida
  5. Oregon

Bottom 5

  1. Mississippi
  2. Maine
  3. Alabama
  4. West Virginia
  5. Louisiana

Quality of Life

Rating based on livability, including several factors, such as the crime rate; inclusiveness, such as antidiscrimination protections; the quality of health care; the level of health insurance coverage and the overall health of the population. Also evaluated were local attractions, parks and recreation, as well as environmental quality.

Top 5

  1. Hawaii
  2. Minnesota
  3. Vermont
  4. New Hampshire
  5. Maine

Bottom 5

  1. Arkansas
  2. Missouri
  3. Oklahoma
  4. Louisiana
  5. Tennessee

Technology and Innovation

Rating based on support for innovation, the number of patents issued to their residents and the record of high-tech business formation. Also considered were federal health, science and agricultural research grants to the states.

Top 5

  1. Washington
  2. California
  3. Massachusetts
  4. New York
  5. Maryland

Bottom 5

  1. Mississippi
  2. West Virginia
  3. Wyoming
  4. Arkansas
  5. Louisiana

Education

Rating based on the number of higher-education institutions in each state, as well as long-term funding trends for higher education. Also evaluated were several measures of K–12 education, including test scores, class size and spending, as well as digital and lifelong learning opportunities in each state.

Top 5

  1. Massachusetts
  2. Minnesota
  3. Wyoming
  4. Illinois
  5. Virginia

Bottom 5

  1. Nevada
  2. Idaho
  3. Mississippi
  4. Arizona
  5. Alabama

Business Friendliness

Rating based on the freedom each state’s legal and regulatory frameworks provide for business.

Top 5

  1. New Hampshire
  2. South Dakota
  3. Virginia
  4. North Dakota
  5. Idaho

Bottom 5

  1. California
  2. West Virginia
  3. Illinois
  4. Mississippi
  5. Hawaii

Cost of Living

Rating based on cost of housing, food and energy.

Top 5

  1. Mississippi
  2. Kentucky
  3. Arkansas
  4. Alabama
  5. Tennessee

Bottom 5

  1. Hawaii
  2. New York
  3. Delaware
  4. California
  5. Connecticut

Access to Capital

Rating based on venture capital investments by state, as well as small-business lending on a relative basis.

Top 5

  1. Illinois
  2. North Carolina
  3. California
  4. Michigan
  5. New Jersey

Bottom 5

  1. Wyoming
  2. Vermont
  3. West Virginia
  4. Delaware
  5. New Mexico

Many US businesses can take advantage of the state and/or federal R&D tax credit. Please contact a Swanson Reed representative to find out what is available in your state and whether your business qualifies.

3D printing shows potential to create wearable electronics

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Researchers at the Missouri University of Science and Technology (S&T) have started the project of creating stretchable electronics that can be elongated, compressed, or twisted to fit practically any surface.

Integrating the wide variety of materials needed to make such an electronic device with such components is proving to be challenging and researchers at Missouri S&T have decided to tackle this challenge using 3D printing, also known as additive manufacturing. Additive manufacturing has the benefit that it can easily change from one material to the another and integrate all the different materials together in one print.This process allows manufacturers to print highly conductive materials onto an elastomer surface layer by layer to create a stretchable electronic device.

At Missouri S&T, researchers are experimenting with a 3D printing approach called ‘direct aerosol printing’. The process involves spraying a conductive material and integrating with a stretchable substrate to develop sensors that can be placed on skin. A working prototype has been created of a stretchable electronic device that can adhere to the face. This project is still in the early phases, however it is believed the technology has a lot of potential, particularly in the biomedical engineering space, because of the soft and conformable nature of the device.

One of the most significant benefits of these electronics is that they can be completely wearable, and can form to any kind of motion, for example, being mounted on the face and detect any small motion from your face. Stretchable electronics could also be developed and installed in shoes and used to measure pressure and weights, the possible applications are extensive.

However, several challenges must be addressed before stretchable electronics become widely used as components in consumer electronics, medical devices and other fields. All the materials needed to make each stretchable electronic device needs to be printable, which means developing ink and printable materials that have all the necessary properties for each type of electronic device. In addition, there are also integration challenges, such as varying temperature requirements among different materials. It is also important to ensure that the stretchable electronics and the malleable surfaces they’re built upon perform and age well together.

One of the biggest research focuses right now is to develop an effective, long-lasting stretchable battery, as the energy device is a very critical component in order for stretchable electronics to be realistic.

Following the perfection of the technology, the products will also need to be scaled-up. 3D printing does make that process more streamlined as it can be easily moved to any location, however there are still a lot of unknown factors. The device itself will also need to be low-cost to create, and eventually biodegradable. Despite these hurdles, researchers are optimistic that stretchable electronics, made using 3D printing, will become more commonplace going forward.

If your company is using 3D printing, you may be eligible for the federal R&D Tax Credit.  Contact a Swanson Reed specialist to see if you qualify.