Bipartisan bill would provide tax relief to innovative small businesses

August 7, 2020
It’s an August recess Friday, but the news keeps coming. Yesterday, President Trump issued a “Buy American” executive order intended to increase federal support for the domestic manufacture of "essential medicines," "medical countermeasures," and "critical inputs.”…
BIO
It’s an August recess Friday, but the news keeps coming. Yesterday, President Trump issued a “Buy American” executive order intended to increase federal support for the domestic manufacture of "essential medicines," "medical countermeasures," and "critical inputs.” BIO is following this closely and will continue to analyze the impacts of the order on our sector and the patients we serve stay tuned for more next week.

In other news, we have the details of a bipartisan bill that could provide much-needed tax relief to biotech innovators—plus, how biotech could save the onion industry. Here are 735 words, 3 minutes, 40 seconds.

Bipartisan bill would provide tax relief to innovative small businesses

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.

 
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Oh no, not onions!

While thinking about what we want to put on the grill this weekend, we came across a recent Innovature blog post about onion-attacking bacteria—and how biotech can save this essential allium. 

In recent years, a pathogen called P. ananatis has been killing onions (and similar crops) across the state of Georgia, reports Innovature.  

The bacterium enters through the onion leaves and “colonize[s] dead onion tissue damaged in its initial attack,” explains Seed World.

And this is something to cry about: The compound that makes your eyes water when you chop an onion is supposed to kill invading bacteria, but P. ananatis is resistant, and the problem’s getting worse as the weather gets hotter and more humid. 

Biotech has a solution! “Researchers at University of Georgia (UGA) have recently discovered the gene in P. ananatis that makes it so resistant to the onion’s natural defenses. They are working to develop an onion that is resistant to this damaging strain and hoping they can turn off the bacteria’s gene that is circumventing thiosulfinates in onions,” explains Innovature

This is just one way biotech can make our food supply and agriculture industry more resilient—and why we continue our work on policies that champion the development and growth of the bioeconomy and biotech innovations, and ensure policymakers and the public understand them.   

 
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President Trump’s Friday: Yesterday, he signed a “Buy American” executive order for essential medicines and medical supplies; STAT News has more on the potential impact. But he still hasn’t released the text of the drug pricing executive order, reports NPR. Now, he’s in New Jersey, with no public events scheduled. 

What’s Happening on Capitol Hill: Maybe no coronavirus aid package this week, says POLITICO. Meanwhile, Sen. Amy Klobuchar (D-MN) is asking the Government Accountability Office (GAO) to look at prescription drug “rebate traps,” according to Forbes.

 
 
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