Qualifying for the Therapeutic Discovery Projects Tax Credit

You may have felt that tremor that has taken over the bio-sciences industry this past month.  The rules and regulations regarding the Therapeutic Discovery Project Tax Credits will be released on or around May 21st.   Jameson & Company are providing the accounting support necessary to submit your application.

Decisions on awards will be made quickly — within 30 days of application — which suggests that the tax credits and grants will be first-come, first-served.  $1 billion dollars will be up for grabs, and the program ends when the money runs out.  THIS PROGRAM IS NOT EXPECTED TO BE RENEWED.

Although the regulations have not been released, companies are compiling everything they need to get prepared to apply.  The race has already begun.  We are working with a network of grant writers to assist with the applications.  We are happy to get you in touch with one to start preparing for this.

If you meet the requirements for application, please contact us as soon as possible to get your accounting prepared.

General Qualifications

• Not more than 250 employees
• A therapeutic discovery project must be one of 3 types
  • To treat or prevent diseases or conditions by conducting pre-clinical activities, clinical trials, and clinical studies, or carrying out research protocols, for the purpose of securing approval of a product under section 505(b) of the Federal Food, Drug and Cosmetic Act or section 351(a) of the Public Health Service Act.
  • To diagnose diseases or conditions or to determine molecular factors related to diseases or conditions by developing molecular diagnostics to guide therapeutic decisions
  • To develop a product, process, or technology to further the delivery or administration of Therapeutics.
• Complex Rules determine which research expenses will be accepted as qualified investments.  You’ll need expert accounting advice to decide which expenses to include in your application.

Selection Criteria for Winning

To win, research projects must show “reasonable potential –

• to result in new therapies –
  • to treat areas of unmet medical need or
  • to prevent, detect or treat chronic or acute diseases and conditions
• to reduce long term health care costs in the United States
• to significantly advance the goal of curing cancer

Additional considerations

Additional considerations will be applied for projects that have the greatest potential to-

• create and sustain (directly or indirectly) high quality, high-paying jobs in the United States
• advance United States competitiveness in the fields of life, biological, and medical sciences.

General Inquiries contact Tom Pistone:  tom@www.jamesoncpa.com /  781-862-5170 x 110.
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