The Treasury Secretary issued guidance on the new Therapeutic Discovery credit. The program provides a tax credit of up to 50% of qualifying research. Eligible firms can opt for a grant, allowing start-ups not yet profitable to benefit from the program.
The program targets research projects with potential to produce new therapies, address unmet medical needs, reduce long-term cost growth, or advance cancer cures. The program also considers projects that create and sustain jobs or help to advance our nation’s competitiveness in life, biological, or medical science.
The funds are available on a competitive basis to device makers with 250 or fewer employees that have made qualified investments in qualifying therapeutic discovery projects in 2009 and 2010.
You may view the Treasury press release at http://www.treasury.gov/press/releases/tg712.htm