• Therapeutic Project Tax Credit/Grant Program Enacted
  • April 8, 2010 | Authors: Laura Ellen Jones; David S. Lowman; Robert M. Schulman; Rodger L. Tate; David B. Weisblat
  • Law Firms: Hunton & Williams LLP - Richmond Office ; Hunton & Williams LLP - Washington Office
  • On March 23, the president signed the H.R. 3590, the Patient Protection and Affordable Care Act (the “Act”). The Act establishes a tax credit equal to 50 percent of “qualified investment” in a “qualifying therapeutic discovery project.” At its election, a taxpayer may receive a grant in lieu of the tax credit equal to 50 percent of the qualified investment. The Act allocates $1 billion for the program for investments made in 2009 and 2010. This new tax credit and grant program provides a significant financial opportunity for companies in the biotechnology industry.