Application Now Available for Therapeutic Discovery Project Tax Credit – Eligible Biomedical Companies Must Apply by July 21

As part of the recently enacted Patient Protection and Affordable Care Act of 2010, biotech companies may be eligible for a tax credit of up to $5 million for qualifying research projects. The credit is a tax benefit targeted at therapeutic discovery projects that show a reasonable potential to:

• Result in new therapies to treat areas of unmet medical need or prevent, detect or treat chronic or acute diseases and conditions,
• Reduce the long-term growth of health care costs in the United States, or
• Significantly advance the goal of curing cancer within 30 years.

Allocation of the credit will also take into consideration which projects show the greatest potential to create and sustain high-quality, high-paying US jobs and to advance US competitiveness in life, biological and medical sciences.

The amount of the credit will be limited to $5 million per taxpayer and there is a $1 billion cap on credits to be issued.  The credit is available to taxpayers with no more than 250 employees and it covers up to 50 percent of a taxpayer’s qualified investment in research. To provide an immediate boost to US biomedical research, the credit is available for qualified investments made, or to be made in 2009 and 2010. To claim the credit, a taxpayer must apply for certification of its qualified investments. 

The application was issued Friday June 18th and must be returned no later than July 21.  Due to the short timeframe for applying, the brevity of the application and the competitive nature of these awards, Central Ohio companies seeking the tax credit are urged to tell the story of the societal and economic benefits of their project in a compelling and succinct way. 

For more information on this program, or for help with the application, contact George C. Proicou, director of life science commercialization for TechColumbus, at gproicou@techcolumbus.org  614-484-5039
To access the application and learn more about the program, click here