Client Alert: $1 Billion Allocated to Investment Credit or Grants for Qualifying Therapeutic Discovery Projects - Act Quickly - By Bill Joseph
March 29, 2010
The health care legislation passed last month includes a new subsidy for biotechnology businesses. The provision (creates) a 50% nonrefundable investment tax credit for “qualified investments” in “qualifying therapeutic discovery projects.” (Only companies with 250 or fewer employees can take advantage of this credit).
Because many biotechnology companies are early stage and do not have taxable income to fully utilize the credit, the new legislation permits companies to elect to receive cash grants in lieu of the tax credit.
Clients that would be able to take advantage of the credit (or receive a grant) should be prepared to act quickly once the certification application procedure is made available.
To read the full client alert, please click the link below.
by: William M. Joseph
topics: Tax Law