The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Tag Archives: tax

Update on U.S. Biotech Bailout

Yesterday the U.S. House of Representatives’ Ways and Means Committee approved the “American Recovery and Reinvestment Plan,” (pdf) which did not include tax stimulus incentives proposed by the biotechnology industry (namely monetizing future Net Operating Losses and future R&D tax credits now in order to forgo those tax assets in the future).

The U.S. House of Representatives package included an enhanced R&D tax credit for up to 20% in R&D expenditures in 2009 and 2010, but limited to renewable energy technology.

The Senate Finance Committee economic stimulus tax bill (pdf) unveiled today extends for 2009 a more general provision that allows firms in a loss position to get cash from the government for research tax credits.

The Senate and House will need to resolve differences with respect to these R&D tax provisons in their respective economic stimulus packages.

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