New tax law extends research & development tax credit
President Obama signed the American Taxpayer Relief Act of 2012 (the Act) into law on January 2, 2013. The Act permanently keeps tax rates from rising for certain individuals and retroactively reinstates certain business tax incentives that had expired. One of the key impacts of the Act for pharmaceutical and life sciences companies is the reinstatement of the research and development (R&D) tax credit.
This edition of PwC's Pharmaceutical and Life Sciences Industry Alert provides guidance on accounting for the retroactive reinstatement of the R&D tax credit.