BIO Applauds House Passage of the American Research & Competitiveness Act
Washington, D.C. (May 9, 2014) – The Biotechnology Industry Organization applauds the passage today by the US House of Representatives of the American Research and Competitiveness Act (H.R. 4438), which would establish a permanent research tax credit.
The following statement may be attributed to BIO President and CEO Jim Greenwood:
“BIO strongly supports the American Research & Competitiveness Act (H.R. 4438), which would strengthen and make permanent the R&D tax credit, and we thank Rep. Kevin Brady (R-TX) for his leadership.
“The R&D tax credit is a vitally important incentive that spurs private-sector funding of the search for new cures and treatments for patients in need. This research not only produces new groundbreaking medical discoveries, but also supports millions of well-paying American jobs.
“The current environment of uncertainty about whether the credit will be extended makes tax planning extremely difficult for companies preparing their development programs. Making the credit permanent would recognize its vital role in supporting America’s innovation economy while providing certainty for businesses working toward the next generation of medical breakthroughs.
“The R&D tax credit is an important tool incentivizing investment at companies with established revenue streams, and we welcome this bill to strengthen and make it permanent.
“However, it is important to recognize the tremendous investments in research made by smaller, pre-revenue companies which do not yet have a tax liability. Such companies are unable to take advantage of the R&D tax credit as currently structured. BIO believes that this critical research should be incentivized in the tax code regardless of the size of the company involved, and we hope to work with Congress to that end.”
For more information on policies affecting emerging biotech companies, please visit http://www.bio.org/ecs.
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