Washington, D.C. (July 31, 2014) – The Biotechnology Industry Organization (BIO) today encourages support for the Competitiveness and Opportunity by Modernizing and Permanently Extending the Tax Credit for Experimentation (COMPETE) Act, introduced today by Senator Tom Carper (D-DE).
The following statement may be attributed to BIO President and CEO Jim Greenwood:
“BIO strongly supports the COMPETE Act, which contains a number of provisions that would increase private sector funding of the search for new cures and treatments for patients in need, for advanced biofuels and for innovative agricultural biotechnology. The Act would strengthen and make permanent the R&D tax credit as well as allow pre-revenue companies to partner with their investors via R&D Partnership Structures. We thank Senator Carper for his leadership in introducing the bill.
“The R&D tax credit is an important incentive that encourages private investment in medical, agricultural, and industrial biotechnology research. Such research not only produces groundbreaking new discoveries, but also creates millions of well-paying American jobs.
“The current environment of uncertainty about whether the credit will be extended makes tax planning extremely difficult for companies preparing their development programs. Making the credit permanent would better effectuate its vital role in supporting America’s innovation economy while providing certainty for businesses working toward the next generation of medical and biotechnology breakthroughs.
“The COMPETE Act also recognizes the critical investments in research made by smaller, pre-revenue companies that cannot yet utilize the R&D tax credit due to their lack of tax liability. The Act would allow them to pass through their tax losses and credits generated by their innovative research to their investors. This provision would level the playing field for smaller companies engaged in groundbreaking research, incentivizing innovation by companies regardless of their size.
”Senator Carper has taken an important step to help drive the next generation of scientific advancement. We support this Act because it would encourage needed investment, support medical research, and stimulate the U.S. economy.”
For more information on policies affecting emerging biotech companies, please visit http://www.bio.org/ecs.
BIO is the world's largest trade association representing 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. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.
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