IRS Issues Guidance on Application Process for New Tax Credits and Cash Grants for Small Biotech Companies

more+
less-

The Patient Protection and Affordable Care Act of 2010 included a tax subsidy for eligible small biotech companies known as the "qualifying therapeutic discovery project" credit. The tax subsidy consists of $1 billion of tax credits ("Credits") or, at the taxpayer's election, cash grants ("Cash Grants") for "qualified investments" made by small biotech companies for the development of new therapies to prevent, diagnose and treat acute and chronic diseases.

On May 21, 2010, the Internal Revenue Service (the "Service") issued Notice 2010-45 (the "Notice"), which established the program and announced the procedures for applying for Credits or Cash Grants. The Notice sets forth the guidelines for the program and also includes "Appendix A" (the "Appendix"), which summarizes the submission information that will be required on the forthcoming application form. Most importantly, the Appendix includes a detailed description of the written narrative known as the "Project Information Memorandum" that must be submitted along with the application form.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Reed Smith | Attorney Advertising

Written by:

more+
less-

Reed Smith on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×