Our June 2010 Life Sciences Newsbrief referenced President Obama’s signing of the Health Care and Education Affordability Reconciliation Act, P.L. 111-152, (2010 Reconciliation Act) on March 30, 2010.
This legislation introduced a new qualifying therapeutic discovery project tax credit, which is designed to encourage investment in new therapies and provides a 50% credit (or a grant for the same amount) for qualifying investments made during 2009 and 2010 tax years (or fiscal 2010 and 2011 tax years).
Canadian life science companies with up to 250 employees during 2009 and 2010 that conduct research and development activities directly or indirectly in the U.S. are eligible to apply to the Treasury Department to obtain certification for qualifying investments. Because the submission deadline of July 21, 2010 is quickly approaching, companies need to move quickly to assess the benefits of applying for this credit.
How We Can Help
It is widely expected that there will be many applications made for this credit. It is also clear that the economic footprint of each applicant in the United States in the present and future will be a significant factor in whether an applicant will be successful.
We can help you carefully consider the merits of your situation and determine whether it would be advantageous to submit an application. We can also help you navigate the application process by working seamlessly with you to coordinate your resources and file an effective application.
PwC also has economists with experience in evaluating the impact of particular therapies on healthcare spending. Finally, we can help you address the income tax and financial accounting implications of the credit.