Tax Credits and Cash Grants

By Lauren Richwine, Communications Specialist

Are you interested in or working toward product development for better medical health care? If so, then you may need to apply for the tax credits and cash grants for qualifying therapeutic discovery projects. Chamber member Barrett & McNagny LLP has provided some information for you to take advantage of this tax credit. 

Basically, the IRS announced that as part of the recently enacted Patient Protection and Affordable Health Care and the Health Care and Education and Reconciliation Act, a non-refundable investment tax credit or cash grant is available for certain taxpayers who have made a “qualified investment” in a “qualified therapeutic discovery project.”

The program, named the “Therapeutic Discovery Project Program,” is targeted to projects that show significant potential to produce new therapies, address unmet medical needs, reduce the long-term growth of health care costs and advance the goal of curing cancer within the next 30 years. The credits allocation will take into consideration which projects show the greatest potential to create and sustain high quality, high paying jobs in the United States and to advance its competitiveness in the field of life, biological, and medical sciences. The tax credit or cash grant may be claimed for up to 50% of qualified investment in a “qualified therapeutic discovery project.”

A copy of the application and application instructions are available here at http://www.irs.gov/pub/irs-pdf/f8942.pdf, or visit www.barrettlaw.com or click  here for more information.