Biotechnology Industry Organization Lauds Senate Passage Of Strengthened Two-Year R&D Credit, USA

Main Category: Pharma Industry / Biotech Industry
Article Date: 03 Oct 2008 - 6:00 PDT

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Urges House to Pass Economic Stabilization Package, to Bolster Investor Confidence and Hasten Therapeutic Development

The Biotechnology Industry Organization (BIO) today lauded U.S. Senate passage of a 2-year extension of the federal research and development (R&D) tax credit and urged the House to pass the package when it is considered on Friday. The R&D tax credit extension is part of the "Emergency Economic Stabilization Act of 2008."

"In today's precarious markets, biotechnology companies need the stabilizing influence that the R&D credit can provide," said Jim Greenwood, President and CEO of BIO. "Much of the promise of biotech therapies for auto-immune diseases, 'superbugs,' biofuels, and many other innovations depends on fostering innovative research through measures like the R&D credit."

"As we approach the end of the year," Greenwood continued, "These businesses face ever more uncertainty about their future, specifically their ability to plan for investments in R&D here in the U.S. It is essential that the House pass the economic stabilization legislation, including a 2-year extension of a strengthened R&D credit, before the 110th Congress adjourns."

Greenwood noted that the economic stabilization legislation includes an increase in the Alternative Simplified Credit (ASC) method rate, which would "strengthen and modernize the R&D credit, something that is long overdue. In a world of mobile capital and increasingly sophisticated and well-trained workforces abroad, the U.S. must employ every measure possible to keep the high-wage jobs associated with research and development here at home. A strengthened and longer-term R&D credit will help to accomplish this goal."

Click here to read BIO's letter to House leadership supporting passage of the "Emergency Economic Stabilization Act of 2008," and here to read a letter signed by a broad coalition of businesses, environmental organizations, public health advocates, electric utilities, agricultural organizations, investors, labor groups, nongovernmental organizations, states, and trade associations urging enactment of a tax extenders bill before Congress leaves for the election recess.

BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.

Biotechnology Industry Organization