bioOrlando is pleased to provide this information to you on behalf of Jon B. Rawlson of Baker & Hostetler LLP.
Applications Available: New Federal Medical Grant Program
Posted: May 21, 2010
Businesses with up to 250 employees that develop biomedical, diagnostic and other products aimed at improving health and reducing costs will be eligible for up to $5 million in grants or tax credits authorized by the new health reform law, the Obama administration detailed on Friday. In a teleconference with reporters, administration officials said that applications for the first round of grants and/or credits (applicable for investments made in 2009 – 2010) will be made available by June 2 and due a month later.
An administration official said that companies developing orphan drugs will likely apply for the programs and clarified that the credits and/or grants are not only for drugs and biologics, but also diagnostics, medical devices and other products.
Applications will be reviewed by the National Institutes Of Health and awards will be announced no later than Oct. 29 of this year. If all of the funds are not distributed in the first round, a second round will be issued, officials said. Congress appropriated $1 billion for the Qualifying Therapeutic Discovery Tax Credit under the health reform law, and IRS and HHS have been working together to implement the program.
An eligible company may seek funding for multiple products in their pipeline, but the administration has set a $5 million cap on grants or credits per entity. Qualifying entities may receive funding for up to 50 percent of their investment in therapies that have a reasonable potential to: result in new therapies that treat areas of unmet medical need or prevent, detect, or treat chronic or acute diseases and conditions; reduce long-term heath care costs; or significantly advance the goal of curing cancer within a 30-year period.
IRS will consider the project's potential to create and sustain -- either directly or indirectly – quality, high-paying jobs and advance U.S. competitiveness in the fields of life, biological and medical sciences. Administration officials said a foreign company with a U.S. subsidiary will be considered for the grants as long as the focus is on providing high-quality jobs in the U.S.
For addition information and questions please contact Jon B. Rawlson at email@example.com.