Buried in the pages of the recently passed Health Care "Reform" Bill are some worthy incentives for small biotechnology companies. They are mentioned under Therapeutic Discovery Project Tax Credit. The program is similar to the tax credits for investments in certain energy projects. While the guidelines have not been fully vetted, the program provides a credit in the amount of 50% of investments in qualified therapeutic discovery projects and qualifying investments made in 2009 and 2010. It is limited to small companies, as defined by having fewer than 250 employees and covers projects that are designed to:
1. Treat or prevent diseases or conditions by conducting pre-clinical studies activities, clinical trials, or carrying out research protocols, for the purpose of securing approval of a drug or a biologic.
2. Determine the molecular factors related to diseases or conditions by developing molecular diagnostics to guide therapeutic decisions, or
3. Develop process, technologies, or products to further the delivery or administration of therapeutics.
While the "Reform" Bill has much that is lamentable, this little tidbit is certainly good news for the small biotechnology and pharmaceutical companies.
