Therapeutic Discovery Project Credit
All Businesses Can Benefit from the New Small Business Jobs Act
On September 27, 2010, President Obama signed into law the Small Business Jobs Act of 2010 , or H.R. 5297 (hereafter, “the Act”). Though many of the Act’s provisions focus on small businesses , the new law also contains tax incentives that apply to all businesses as well as new retirement savings incentives for individuals . It is important to note that some of these provisions offer taxpayers a very small window of opportunity, requiring action before the end of the year to take advantage of the savings. INCENTIVES FOR ALL BUSINESSES The Act enhances and extends a number of tax incentives that were originally included in the Economic Stimulus Act of 2008 (“the 2008 Stimulus Act”) and the American Recovery and Reinvestment Act of 2009 (“the. Read More.
Action Required by July 21 to Receive New Qualifying Therapeutic Discovery Tax Credit
The IRS recently issued Form 8942 , for use by biotech, medical device, and pharmaceutical companies interested in applying for the new Qualifying Therapeutic Discovery Project Credit (the “Credit”). According to IRS Notice 2010-45 , companies applying for the Credit will be required to submit the new Form 8942 which is due no later than July 21, 2010 for the 2009-2010 allocation round. Given the small window of opportunity available to take advantage of this federal program, organizations that have less than 250 employees, and are focused on controlling the rising costs of healthcare or developing technologies and therapeutics, should take a minute to consider the merits of completing. Read More.
Guidance Issued for Qualifying Therapeutic Discovery Project Tax Credit
The IRS has released guidance for biotech, medical device and pharmaceutical companies interested in the Qualifying Therapeutic Discovery Project Credit (the “Credit”). Enacted under recent Health Care Reform legislation , the Credit provides companies with a tax benefit up to 50 percent of their qualified investment in qualifying therapeutic discovery projects for tax years beginning in 2009 and 2010. A very limited amount of funds are available for this highly competitive credit. According to IRS Notice 2010-45 , companies applying for the Credit will be required to submit the new Form 8942. Form 8942 will be issued by June 21, 2010 and is due no later than July 21, 2010 for. Read More.
Guidance and Instructions Expected Soon for Qualifying Therapeutic Discovery Project Credits
On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act into law, which contains a powerful new tax incentive – the Qualifying Therapeutic Discovery Project Credit . This new tax credit is for biotech, pharmaceutical, and medical device businesses – even businesses companies that are not currently paying taxes or have losses. Enacted as Section 48D of the Internal Revenue Code, the new credit will allow some businesses to claim a credit for 50 percent of their qualified investment in qualifying therapeutic discovery projects for years beginning in 2009 and 2010. However, only a limited amount of funds are available for this highly competitive credit, and only. Read More.
New Therapeutic Discovery Projects Tax Credit Offers Opportunity for Biotech Companies
A provision of the new Health Care Reform Law offers a two-year temporary tax credit for investments in therapeutic discovery projects. This credit for new health care therapies is effective for tax years beginning in 2009 and 2010. As reported in The Star-Ledger , this therapeutic discovery project credit represents a victory for the biotechnology sector, and could help biotech firms better position themselves for success in a recovering economy. The tax credit initiative, which is capped at $1 billion for a two-year period, is intended to help some of the smallest drugmakers pay the salaries of scientists, continue expensive research and retain workers in their. Read More.