Health Care Bill Includes 50 Percent Credit for Biotech Research

During the debates over the Patient Protection and Affordable Care Act, also known as the Health Care Reform Bill, there was much discussion of whether or not reform would hinder innovation in pharmaceuticals and medicine. As a result, the final legislation included some measures to support research and commercialization in the life science. One such measure, the Therapeutic Discovery Project Credit, offers a 50 percent tax credit or cash grant for qualifying research projects and small- and medium-sized companies. Although many details remain unclear, the credit will, at least, apply to projects undertaken during the 2009 and 2010 tax years.

The 50 percent credit is intended to limit tax liability for biotech companies and their investors. A cash grant is available for companies with no tax liability, or whose liability is less than the amount of the credit.

Full Story: http://www.ssti.org/Digest/2010/050510.htm#story2