Kerry: Deadline Set For Small Life Science Companies to Apply For Investment Tax Credits
Senator John Kerry today announced that the U.S. Treasury Department has released guidance and set a deadline for small life science companies to apply for the Therapeutic Tax Credit, which was championed by Kerry and Senator Robert Menendez (D-NJ), and passed as part of the Patient Protection and Affordable Care Act.
The Therapeutic Tax Credit creates a two year temporary tax credit for small life science businesses. The credit aims to encourage investments in new therapies to prevent, diagnose and treat acute and chronic diseases. Businesses with 250 employees or fewer are eligible to apply for this credit, but must act quickly. The U.S. Treasury Department, which was tasked with putting the program in place, announced that the application process for the credit begins on June 21 and closes on July 21, 2010, and applications will receive a determination no later than October 29, 2010. The overall cap is set at $1 billion nationwide.
"This tax credit will help Massachusetts companies create and sustain high-quality jobs in life, biological and medical sciences. Their work will give us greater resources to prevent and treat diseases and will help our life science companies compete in a rapidly expanding field. I strongly urge every company that's eligible to apply for this credit and to contact me if we can be of any assistance," said Senator Kerry.
"This new Therapeutic Discovery Project Credit, on which MassBio worked closely with Senator Kerry, could not come at a better time, nor could it be focused on a better target. This provides an appropriate opportunity for our small biotechnology companies to access much-needed capital to sustain their R&D programs. Due to the vision and commitment of leaders like Senator Kerry, this program has the potential to result in new treatments, new therapies, and life-saving cures for patients around the world," said Robert K. Coughlin, President & CEO of MassBio.
The company will be provided with a 50 percent credit for investments in "qualifying therapeutic discovery projects." The legislation defines a therapeutic discovery project as one that is designed to do one of three things:
* Treat or prevent diseases or conditions by conducting pre-clinical activities, clinical trials and clinical studies, or carrying out research protocols for the purpose of securing federal government approval by the FDA.
* Diagnose diseases or conditions or to determine molecular factors related to diseases or conditions by developing molecular diagnostics to guide therapeutic decisions.
* Develop a product, process or technology to further the delivery or administration of therapeutics.