November 13, 2013
Susan Davis and Allyson Y. Schwartz Introduce Bill to Spur
Biotech and Medical Device Development
WASHINGTON – Congresswoman Susan Davis (D-CA) and Rep. Allyson Y. Schwartz (D-PA) today introduced legislation to spark innovation within the nation’s biotech and medical device industry. The Qualifying Therapeutic Discovery Project Tax Credit Extension Act would provide tax credits to companies developing promising new lifesaving medications or medical devices.
“It’s vitally important to encourage innovation in the American biotechnology industry,” said Rep. Davis. “Medical technology industries create products that treat and prevent debilitating and painful disease and illness. Americans will ultimately live healthier and more productive lives with the investment made by the program. These fields also provide high-paying and stable employment and send millions of dollars back into our economy, particularly in San Diego.”
"Supporting more than 80,000 jobs in Pennsylvania alone, the biotechnology industry is a vital component of growing the economy of the future," Rep. Schwartz said. "Biotechnology companies are transforming the medical field by developing life-saving cures and groundbreaking new and improved medicine. Smart, targeted tax credits and grants like this effort are precisely the types of incentives we need to make to ensure our nation’s leadership in a global, innovation-driven economy.”
“Biocom thanks Congresswoman Davis for introducing this very important legislation. Having represented much of the San Diego life science cluster, Congresswoman Davis has a unique understanding of the critical need for the Qualifying Therapeutic Discovery Project Tax Credit. The vast majority of Biocom’s membership is small companies with no approved product who exist on limited funding. These are the companies for whom this bill may mean keeping the doors open long enough to progress to the next step of drug or device development,” said Joe Panetta, President and CEO of Biocom.
“The Therapeutic Discovery Project Tax Credit has succeeded in bolstering promising biotechnology R&D, innovation and job retention and creation in our state,” says David Gollaher, Ph.D., President and CEO of California Healthcare Institute (CHI), the public policy and advocacy association for California’s statewide biomedical innovation sector. “Across the two years of the program, California-based firms alone were awarded over $280 million in grants and credits for projects targeting conditions and diseases such as cancer, spinal cord injury, tuberculosis, Parkinson’s, hepatitis, diabetes and heart disease. CHI applauds Congresswomen Susan Davis and Allyson Schwartz for their leadership to renew and extend the Therapeutic Discovery Project Tax Credit program.”
The Patient Protection and Affordable Care Act authorized the Qualifying Therapeutic Discovery Project Program to encourage innovation in biotechnology. The program expired at the end of 2010 after successfully providing $2 billion in funding to keep the United States on the cutting edge of medical technology innovation.
The Davis-Schwartz legislation makes the tax credit permanent. A total of $1 billion in tax credits would be available biennially for investment in products that will diagnose, treat, or prevent disease.