On Friday, June 18, 2010, the IRS announced that small biotechnology or life sciences companies (with no more than 250 employees) may begin applying for certification for tax credits or grants available under the Qualifying Therapeutic Discovery Project Program, created by the Affordable Care Act. The tax credits and grants are available for research projects that show significant potential to produce new cost-saving therapies, create U.S. jobs, or increase U.S. competitiveness. (See our May 26 alert for a description of the program and earlier guidance published by the IRS).

The application form (IRS Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program) and instructions for the form are now available on the IRS Web site.

To be considered for certification, an application must be postmarked by July 21, 2010. The IRS will issue certifications by the end of October, based on the determinations made by the U.S. Department of Health and Human Services. More information, including frequently asked questions and answers on this program, can be found at the IRS Web site.

Ballard Spahr LLP attorneys are available to assist companies in evaluating their eligibility for a credit or grant and in preparing the applications. For further information, please contact Douglas M. Fox, 410.528.5505 or foxd@ballardspahr.com; Wayne R. Strasbaugh, 215.864.8328 or strasbaugh@ballardspahr.com.

Copyright © 2010 by Ballard Spahr LLP.
(No claim to original U.S. government material.)



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