WASHINGTON, D.C. - MAY 21, 2010 - Senator Tom Harkin (D-IA) today issued the following statement as the Obama Administration released guidance for biomedical research firms to take advantage of a new tax credit. The new policy became law as part of The Patient Protection and Affordable Care Act, the health reform bill. Harkin helped craft that law as Chairman of the Senate Health, Education, Labor and Pensions Committee. He has been a long-time leader to secure funding for biomedical research as chair of the Appropriations Subcommittee that funds health initiatives.
"The promise of health reform continues to become a reality for Iowans," said Senator Harkin. "With the guidance released today, our economy will begin to turn the corner with good jobs in the field of biomedical research and incentives to boost research and produce new therapies in this critical field. I urge all eligible firms to look into this new incentive and take advantage."
Key facts on the Therapeutic Discovery Tax Credit:
· The tax credit is effective immediately and covers up to 50 percent of the cost of qualifying biomedical research.
· The credit will be allocated among projects that show significant potential to produce new and cost-saving therapies, support good jobs and increase U.S. competitiveness.
· The credit is only available to smaller firms: those with 250 workers or fewer.
· Firms can opt to receive a grant instead of a tax credit, so startups that are not yet profitable can benefit as well.
The new tax incentive will be administered by the Internal Revenue Service (IRS) and Department of Health and Human Services (HHS). Applications are available on IRS website at http://www.irs.gov/ and are due by July 21st, 2010.
###
