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Tax Initiatives
Orphan Drug Tax Credit
The President's budget includes a proposal that would allow the application of the Orphan Drug Tax Credit to expenses incurred prior to FDA designation of a drug as a potential treatment for a rare disease or condition. Currently, the 50% tax credit on expense related to human clinical testing can only be taken after the FDA assigns the designation. Many clinical trials have been deferred because the expenses incurred while the FDA reviews the application for designation are ineligible for the tax credit.
Expansion of Health Coverage
To encourage private health insurance coverage for individuals under age 65, the Administration's budget request includes a new refundable tax credit for low- and moderate-income individuals and families who are not covered by private or public programs. Eligible individuals could claim a credit up to 90% of the premium costs-up to $1,000 per individual and $500 per child. Qualifying insurance could be purchased on the individual market or through qualifying purchasing pools.
The proposed budget also includes a new tax provision to improve and permanently extend the Archer Medical Savings Account (MSA). The cap on the number of MSAs would be lifted and a variety of other improvements would be made.
Other Health Coverage
The budget proposes 1,200 new and expanded health centers to serve an additional 6.1 million people.
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