Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Pharmaceuticals

Health Reform Package Includes Biotech Credit

by Glenn Hess
April 12, 2010 | A version of this story appeared in Volume 88, Issue 15

Analysts and industry officials say a research tax credit included in the new health care reform law could give a significant boost to biotechnology companies. The highly publicized bill allows biotech companies with 250 or fewer employees to claim a credit for 50% of their investment in qualifying therapeutic discovery projects for tax years 2009 and 2010, or a grant for the same amount tax-free. "This new therapeutic credit provides small biotechs with much-needed capital to sustain their R&D programs, and it couldn't have come at a better time, with the current investing climate," says David Ji, a biochemist and managing director of the tax services firm Alliantgroup. Qualifying therapeutic discovery projects include those designed to find treatments for or prevent diseases or conditions by conducting preclinical or clinical studies for the purpose of securing FDA approval of a product. The tax credit will provide "some financial relief to research-intensive small biotechnology companies that continue to suffer from tight credit markets," says James C. Greenwood, president of the Biotechnology Industry Organization, a lobbying group.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.