US biotechnology trade group BIO calls for renewal of one-time $1 billion tax credit

The USA’s Biotechnology Industry Organization (BIO) last week made a call for Congress to repeat a one-time $1 billion program that provides tax credits to small companies that are developing new drugs, saying this will have a positive impact on advancing life-saving therapies and cures for patients, and US biotechnology competitiveness, while helping sustain and create jobs.

Under the Therapeutic Discovery Project passed in March as part of the US health-care overhaul, $5 million in grants or tax credits will be awarded to drug companies with 250 or fewer employees to support work developing new therapies. Recipients in the current program are to be notified by the Internal Revenue Service.

The chief executives of eligible biotech companies also say the program increases the likelihood that they will keep their operations in the USA. The new findings of a survey were released by the BIO, which said that recipients of the awards are expected to be announced by early next week.