Tax Alert: Small Businesses May Apply for Available Tax Credit, Grant Certifications Under Qualifying Therapeutic Discovery Project Program
6/22/2010
The IRS has announced that small businesses may begin applying for certification for tax credits or grants available under the Qualifying Therapeutic Discovery Project Program, created by the Patient Protection and Affordable Care Act (or, P.L. 111-148). These credits or grants are available for projects that show significant potential to produce new cost-saving therapies, create U.S. jobs, and increase U.S. competitiveness. Applications must be postmarked no later than July 21, 2010.
The qualifying therapeutic discovery project credit or grant covers up to 50 percent of the cost of qualifying biomedical research, up to a maximum credit of $5 million per firm and $1 billion overall, and is only available to businesses with no more than 250 employees. Credits and grants are available for investments made in 2009 and 2010.
The Department of Health and Human Services (HHS) will evaluate each project for its potential to produce new therapies, reduce long-term health care costs, or cure cancer within 30 years. Only projects that show a reasonable potential to meet these goals will be certified as eligible for the credit or grant. The IRS will issue certifications by the end of October, based on the HHS’s determinations.
Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program, can be found here.
The instructions can be found here.
If you have any questions regarding the certification application process, or about the Qualifying Therapeutic Discovery Project Program, please contact your J.H. Cohn professional at 877-704-3500.
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