Previously, I've published an update from GEN on the progress being made with applications for the Qualifying Therapeutic Discovery Project tax credit that was a $1 B fund set up as part of the Patient Protection and Affordable Care Act (healthcare reform) passed in March.
As a further update, MNT published a BIO survey of 125 CEOs from small to medium biotechs (this tax credit is avaialble to companies with <250 employees) as to their perceptions of the Project's value. The consensus opinion is that the program is a big benefit to the US Biotech industry and should be continued.
Jim Greenwood, president and CEO of BIO said "America is the world leader in biotech, and we hope Congress will consider extending and expanding this program to support American innovation and speed the development of life-saving cures."
Here are some key reponses from the survey:
- 75% CEOs say tax credit will have positive effect on job sustainability in the US
- 72% say it will help US biotech's global competitiveness
- 76% say it will advance life saving cures and therapies
- 67% say it will help them create more jobs and hire more staff
- 30% say they can maintain current employment levels which would not happen otherwise
I've stated before that I think that it is good public policy for the US Government to provide tax incentives for investment and support in the biotech industry to help it maintain a World leadership position. Recipients for this last round of tax credits will be announced sometime next week and I'll follow up on that here.
Posted by Bruce Lehr October 30th 2010.