|Published:||May 21, 2010 11:41 AM EDT|
|Updated:||May 21, 2010 11:40 AM EDT|
WASHINGTON (AP) - The Internal Revenue Service on Friday
released the guidelines that small companies can use to apply for
tax credits to spur medical research.
The credit will cover up to 50 percent of the cost of qualifying
biomedical research, up to a maximum credit of $5 million per
business. The credit is only available to companies with fewer than
"This new tax credit will help advance research to find
lifesaving treatments and help U.S. companies lead the way in
innovative medical discoveries," Treasury Secretary Timothy
Geithner said in a statement.
The IRS released the rules companies will need to follow to
apply to have their research projects certified as eligible to
participate in the government's Therapeutic Discovery Project
The tax credit, which will be available for investments made in
2009 and 2010, was included in the sweeping health care overhaul
legislation that President Barack Obama signed into law in March.
Companies may submit applications for certification for the
credit beginning on June 21. As part of the review process, the
Health and Human Services Department will evaluate each project for
its potential to produce new therapies or reduce health care costs.
Only projects that show a reasonable potential to meet these
goals will be certified as eligible for the tax credit. The IRS
will issue the certifications by the end of October.
The biotechnology industry employs 1.3 million workers in the