Governor Patrick and Life Sciences Leaders Urge Massachusetts Companies to Apply To Federal Therapeutic Tax Credit Program
Application period opens on June 21st
Boston, MA – Governor Patrick, the Massachusetts Life Sciences Center, MassBio and MassMEDIC today urged qualifying companies to apply for the Therapeutic Discovery Tax Credit, a new federal program created under the Affordable Care Act to support biomedical research. Qualifying companies may apply to the new federal program starting on Monday, June 21, 2010 with applications due by July 21, 2010. Applicants will receive a determination no later than October 29, 2010. More information is available on the MassBio website, www.massbio.org, or the web site of the Massachusetts Life Sciences Center, www.masslifescience.com.
Limited to smaller companies (with 250 or fewer employees), the Therapeutic Discovery Tax Credit will be granted to biomedical research firms with projects that show significant potential to produce important new therapies, create high-quality jobs, and enhance U.S. competitiveness. The tax credit is effective immediately and covers up to 50 percent of the cost of qualifying biomedical research. To allow startup companies to participate, applicants can take the money as a grant instead of a tax credit, providing an immediate cash infusion for companies looking to continue their innovative research.
Applications will be subjected to a rigorous evaluation process and awards will be made on a competitive basis. The Department of Health and Human Services (HHS) will evaluate each project for its potential to produce new therapies, address unmet medical needs, reduce healthcare costs or advance the goal of curing cancer. The new tax credit program was championed by three US senators — Max Baucus of Montana, John Kerry of Massachusetts, and Robert Menendez of New Jersey — and incorporated in President Barack Obama's health care overhaul. Administration officials expect to receive thousands of applications.
"We applaud the President’s efforts to promote life-saving research and provide a boost to the small businesses that conduct it, and we thank Senator Kerry for his leadership on this issue," said Governor Deval Patrick. "This program will create jobs in our innovation economy in Massachusetts, but only if local companies apply. I encourage Massachusetts companies and entrepreneurs to take advantage of this exciting opportunity."
“Massachusetts companies are well positioned to compete for these funds as long as we are well represented in the applicant pool,” said Dr. Susan Windham-Bannister, President & CEO of the Massachusetts Life Sciences Center. “We look forward to seeing some of our terrific young companies and entrepreneurs in Massachusetts leverage this new source of federal funding. We have encouraged the companies in whom we have already invested to apply for the credit and are pleased to hear that many of them are planning to do so.”
"This new credit presents an unbelievable opportunity for our earliest stage companies to access resources that will allow them to push the most cutting-edge research forward," said Robert Coughlin, President & CEO of MassBio. “For every dollar credited, that is a dollar being invested back into the research we see changing and saving lives every day.”
“This tax credit program could provide the cash needed to boost R&D expenditures, increase headcount and, most importantly to device manufacturers, accelerate time to market,” said Tom Sommer, President of the Massachusetts Medical Device Industry Council (MassMEDIC).
About the Massachusetts Life Sciences Center
The Massachusetts Life Sciences Center (MLSC) is a quasi-public agency of the Commonwealth of Massachusetts tasked with implementing the Massachusetts Life Sciences Act, a ten-year, $1 billion initiative that was signed into law in June of 2008. The Center’s mission is to create jobs in the life sciences and support vital scientific research that will improve the human condition. This work includes making financial investments in public and private institutions that are advancing life sciences research, development and commercialization as well as building ties between sectors of the Massachusetts life sciences community. For more information, visit www.masslifesciences.com.
MassBio, a not-for-profit organization that represents and provides services and support for the Massachusetts biotechnology industry, is the nation's oldest biotechnology trade association. Founded in 1985, MassBio is committed to advancing the development of critical new science, technology and medicines that benefit people worldwide. Representing over 600 biotechnology companies, academic institutions, research hospitals, and service organizations involved in life sciences and health care, MassBio works to advance policy and promote education, while providing member programs and events, industry information, and services.
The Massachusetts Medical Device Industry Council, an organization of over 400 manufacturers, suppliers, research institutions, and academic health centers, was formed in 1996 to promote the unique interests of the Bay State’s growing and vibrant medical device sector. Through a variety of programs, informational seminars, advocacy campaigns and other projects, MassMEDIC provides medical device manufacturers and suppliers with information on industry trends and regulatory policies, and creates forums that allow members to exchange ideas and information on issues affecting the industry. The organization has also effectively advocated industry positions on Capitol Hill and Beacon Hill and before the Food and Drug Administration and the Centers for Medicare and Medicaid Services. For more information on MassMEDIC, please contact us at (617) 414-1340 or visit: www.massmedic.com.