Senator Santorum and Representative Hart Discuss Bill to Amend Tax Law

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WASHINGTON, D.C. (December 6, 2005) – Senator Rick Santorum (R-PA) and Representative Melissa Hart (R-PA) held a press conference in Pittsburgh, Pennsylvania yesterday to discuss the “Biotechnology Future Investment Expansion (BIOFIX) Act of 2005” (S. 1893/H.R. 4082). 

BIOFIX would amend Section 382 of the Internal Revenue Code to foster biotechnology companies’ access to capital by expanding use of net operating losses (NOLs) after becoming profitable or following a business-driven merger with another biotech company.

“Biotech companies incur unique startup costs and a lengthy process to get products in the marketplace.  By updating this provision in the tax code to meet the needs of the biotechnology sector, companies are encouraged to expand their research for treatments for devastating diseases like cancer, Alzheimer’s, AIDS and Parkinson’s,” Senator Santorum stated.

“There can be no disputing that biotechnology firms have been a catalyst for innovation and have developed many promising treatments and cures.  Start-up biotechnology firms, however, are currently hampered by complicated and costly tax provisions that hinder their ability to invest in research and development. The incentives in our bill encourage research and development and allow biotechnology firms to concentrate on what they do best,” said Representative Hart.

BIO president and CEO Jim Greenwood applauded the efforts of the legislators to update our tax laws to recognize the uniquely capital-intensive nature of the biotechnology industry. “Senator Santorum and Representative Hart well understand the future economic growth and job creation that come from a healthy biotechnology industry,” Greenwood stated, “Equitable tax treatment is critical for emerging biotechnology companies and for the patients who are relying on them for new, innovative therapies.”

The Chief Operating Officer of the Pittsburgh Life Sciences Greenhouse, David Palmer, endorsed the BIOFIX legislation to spur economic development in Pennsylvania, “This legislation is an important effort at the federal level to create a more favorable economic climate for life sciences companies and will help spur regional economic growth and development.”

The press conference followed a roundtable sponsored by the Pittsburgh Life Sciences Greenhouse and the Pittsburgh Technology Council.  Senator Santorum and Representative Hart were joined by executives from 30 local biotech companies and Mickey Flynn, president of Pennsylvania Bio, to discuss issues facing the biotechnology industry.

BIO represents more than 1,100 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and 31 other nations. BIO members are involved in the research and development of healthcare, agricultural, industrial and environmental biotechnology products.

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About BIO
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.