3D printing is beginning to impact hospital processes. Within hospitals, 3D printing is resulting in more successful surgeries, easier and more accurate testing of drugs, as well as better-developed synthetics. According to the Industry ARC, global revenue in healthcare 3D printing is expected to reach $1 billion by 2019. Although it is mostly used for implants, hospitals have been expanding their facilities by adding centralized 3D printing departments. Hospitals and other medical centers that use 3D printers may be eligible for the Research and Development Tax Credit.
The Research & Development Tax Credit
Enacted in 1981, the Federal Research and Development (R&D) Tax Credit allows a credit of up to 13 percent of eligible spending for new and improved products and processes. Qualified research must meet the following four criteria:
- New or improved products, processes, or software
- Technological in nature
- Elimination of uncertainty
- Process of experimentation
Eligible costs include employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent. On December 18, 2015 President Obama signed the bill making the R&D Tax Credit permanent. Beginning in 2016, the R&D credit can be used to offset Alternative Minimum Tax and startup businesses can utilize the credit against $250,000 per year in payroll taxes.
Surgical Planning
Stratasys
Education
In terms of education, 3D printing is improving student experiences by enhancing learning and minimizing costs. By using 3D printing in medical training, students are able to get relevant models that can be modified and printed to represent the specific pathology that is being studied. This is an improvement from using animals, cadavers, and other not completely accurate models. Additionally, 3D printing provides convenience because CAD designs can be stored digitally and printed from anywhere, which gives medical centers and schools immediate access to 3D models without additional transportation costs. Medical students at the Eastern Virginia Medical School (EVMS) are among the future physicians that are being trained with 3D printed anatomical models. They are able to study the most intricate details of the human body, from the smallest bone in the ear to a fetal skeleton, and hold these models in their hands. Many say that this has taken their understanding and training to an entirely new level.
3D Printed Stents
Conclusion
3D printing has the ability to dramatically improve procedures in the medical industry, specifically within hospitals. In order to accelerate this integration, research and development will be required to create innovative technologies and improved processes. These activities may qualify for substantial Federal and State R&D Tax Credits, which will benefit hospitals, medical centers as well as companies engaged in the development of these 3D printing technologies.
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Charles Goulding and Rafaella July of R&D Tax Savers discuss 3D printing in the medical field.