June 21, 2010 marked a turning point for the IRS’s Qualifying Therapeutic Discovery Project Program, as the operation, created under the Affordable Care Act, officially began accepting applications. For small medical research firms across the country, this new legislation could provide the funds and hope necessary for success. Targeted specifically towards companies with 250 employees or less, the initiative encourages agencies of “groundbreaking” health and medical research to continue doing what they are doing- without having to worry so much about costs.
While the application seems quite selective, companies that demonstrate true potential and need could be significantly rewarded. This means grants covering up to 50% of biomedical research, credits of up to $5 million per firm, and $1 billion overall, available and ready to be distributed to investments made in 2009 and 2010. The belief is that the money could significantly improve US health potential and competitiveness while also creating jobs and interest.
So, exactly how selective is the application? While we already mentioned that the initiative is targeted towards small firms, less than 250 employees to be exact, there are several other standards revolving around the nature of medical research in which the firms partake that must be met. For example, firms must prove their potential to either; a) produce new therapies to treat or prevent diseases, b) reduce long term US health care costs, or c) considerably advance the goal of curing cancer within the next 30 years. The Department of Health and Human Services is set to evaluate each application on an individual basis for its likelihood to meet such requirements.
Think the Qualifying Therapeutic Discovery Project Program could benefit your company? Start the application ASAP, as claims must be postmarked by July 21, 2010- less than month away! Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program, is now available, and can be found along with detailed instructions, on IRS website.
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