BIO Lauds Passage of Amendment by Senators Voinovich and Stabenow
BIO applauds Senators George Voinovich (R-OH) and Debbie Stabenow (D-MI) for their amendment, which passed the Senate Friday by a vote of 76 – 2, to allow companies to accelerate the utilization of existing tax credits, such as the federal Research and Development (R&D) tax credit. The amendment would improve the investment climate for the large majority of biotechnology companies that have not yet attained profitability, companies that currently cannot take advantage of the investment incentives passed into law earlier this year as part of the “Economic Stimulus Act of 2008.”
“The Voinovich/Stabenow amendment is proof that in its efforts to stimulate the economy, Congress is committed to a plan that will benefit all sectors of our economy, not only those sectors currently in the black,” noted BIO President and CEO Jim Greenwood. “It is during an economic downturn when companies in highly capital-intensive industries like biotechnology most need assistance investing in the new technologies necessary to conduct cutting-edge medical research.”
Specifically, the amendment allows loss companies, who cannot benefit from the bonus depreciation provision passed into law as part of the economic stimulus legislation, to elect to utilize their accumulated R&D and/or AMT credits in an amount equal to the benefit the company would have otherwise received under bonus depreciation. The amendment was co-sponsored by Senators Orrin Hatch, Jay Rockefeller, Gordon Smith, Maria Cantwell, David Vitter and Carl Levin.
“Keeping our economy strong is the best way to revitalize America’s housing market, and new business investments in plants and equipment are one of the best ways to keep this economy growing,” said Greenwood
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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.
Upcoming BIO Events
· BIO-Europe Spring
April 7-9, 2008
Madrid, Spain
· BIO National Venture Conference
April 22-23, 2008
Boston, Mass.
· World Congress on Industrial Biotechnology & Bioprocessing
April 27-30, 2008
Chicago, Ill.
· 2008 BIO International Convention
June 17-20, 2008
San Diego, Calif.
About BIO
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 annual BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
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