Immediate R&D Tax Breaks are Back
A major change in tax law (the "One Big Beautiful Bill Act") is a massive win for the orthopedic and MedTech industry. Effective immediately, U.S. companies can now write off 100% of their domestic R&D costs in the same year they spend the money. This ends the old requirement to spread those tax breaks over five years, providing an immediate cash-flow boost for startups developing next-gen implants, robotics, and biologics.
The "Double-Dip" Strategy: Deductions + Credits You can now lower your taxable income and your actual tax bill at the same time:
Immediate Expensing: Deduct your full R&D spend right away to lower your taxable income.
The R&D Tax Credit: Get a dollar-for-dollar reduction of your tax bill.
Does your work qualify? Most orthopedic startups meet the criteria if they are:
Developing a new or improved product (like a spinal screw or software).
Solving a technical design problem.
Using testing, modeling, or trial-and-error.
Grounding the work in science or engineering.
Key Benefits for Startups
Pay Less Payroll Tax: If you are in your first five years and making less than $5M annually, you can use the R&D cred...
