A bipartisan bill was recently introduced in the U.S. House that would help support startups working on solutions to COVID-19. Here’s the scoop.
This week, Reps. Dean Phillips (D-MN) and Jackie Walorski (R-IN) introduced the IGNITE American Innovation Act (H.R. 7917), which would provide tax relief to businesses unable to utilize tax provisions under the CARES Act during the coronavirus crisis.
Specifically, the bill would allow certain small and medium-sized businesses to “monetize up to $25 million in net operating loss (NOL) carryforwards and R&D credits, and provide a bonus for tax assets generated by research and production of technologies intended to prevent, diagnose, and treat COVID-19,” we explained in a coalition letter.
It will create jobs “and accelerate economic activity in the short-term in a way that will also strengthen our nation’s economic future,” we said.
And it will help us get out of the COVID-19 crisis by increasing investment in R&D for vaccines, therapeutics, diagnostics, and other products needed to fight COVID-19, and “provide a broad-based approach to fighting the pandemic and getting the country to get back to work.”
What they’re saying, part 1: “Smaller startups and growth companies are unique business models and have to compete against large corporate incumbents—that’s challenging under regular conditions, and even more so during this time of economic uncertainty.” said Rep. Phillips.
What they’re saying, part 2: “The IGNITE American Innovation Act will give startups greater opportunity to continue growing, innovating, and developing life-saving technologies at a time when we need them more than ever,” said Rep. Walorski.
Dr. Michelle’s Diagnosis: We are proud to support the IGNITE American Innovation Act which will support start-ups through the economic crisis created by COVID-19. This legislation is crucial in allowing the monetization of tax assets generated through a focus on research and technologies to provide much-needed liquidity for small biotechs to continue their critical mission to heal, fuel, and feed the world. – BIO President and CEO Dr. Michelle McMurry-Heath
More Health Care News:
The Washington Post (Opinion): No matter what, only a safe, effective vaccine will get our approval
“I cannot make any predictions about timing of an emergency use or final approval of a COVID-19 vaccine. But I can attest that every FDA resource has been, and will continue to be, at the ready to facilitate clinical testing programs, and to review clinical data and manufacturing facilities. I can further provide assurances that any vaccine authorized for widespread use will meet the appropriate standards for quality, safety, and efficacy,” writes FDA Commissioner Dr. Stephen Hahn.