June 21, 2010
The Application Form is Available: IRS Is Now Accepting Applications for the Qualifying Therapeutic Discovery Project Program
The IRS announced on Friday that companies may now begin applying for certification for tax credits or grants available under the Qualifying Therapeutic Discovery Project Program, which was created by the Affordable Care Act.
These credits or grants are available for projects that show significant potential to produce new cost-saving therapies, create U.S. jobs, and increase U.S. competitiveness. The qualifying therapeutic discovery project program is targeted to projects that show potential to produce new therapies, reduce long-term health care costs, or significantly advance the goal of curing cancer within the next 30 years.
The credit or grant covers up to 50 percent of the cost of qualifying biomedical research, up to a maximum credit of $5 million per company and $1 billion overall, and is only available to companies with no more than 250 employees. Credits and grants are available for investments made in 2009 and 2010.
Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program, and its instructions are now available through these links or the IRS website at IRS.gov. Companies may submit applications for certification now and applications must be postmarked no later than July 21, 2010.
As part of the review process for research projects, the Department of Health and Human Services (HHS) will evaluate each project for its potential to produce new therapies, reduce long-term health care costs or cure cancer within 30 years. Only projects that show a reasonable potential to meet these goals will be certified as eligible for the credit or grant.The IRS will issue certifications by the end of October, based on the determinations made by HHS. If your Company may be eligible or if you have any questions on this program, contact your MarcumRachlin Tax Professional indicated below. Additional information on this program can also be found on the Affordable Care Act page of IRS.gov.