Client Alert
| April 23, 2010
Attention Small Biotechs and Pharmas: Significant New Tax Incentives for Small Therapeutic Development Companies Enacted by Health Care Reform Legislation
The Patient Protection and Affordable Care Act (the “Act”) signed by President Obama on March 23, 2010 contains a significant new tax incentive for qualifying therapeutic development companies (“biotechs”) in the form of the Qualifying Therapeutic Discovery Project Credit (the “Therapeutic Tax Credit”). The Therapeutic Tax Credit allows qualifying biotechs to claim a nonrefundable credit for 50 percent of their qualified investment costs in covered projects for their 2009 and 2010 tax years.
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This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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