BIO Supports Santorum/Hart Bill to Amend Tax Law
WASHINGTON, D.C. (October 19, 2005) – Jim Greenwood, president and CEO of the Biotechnology Industry Organization (BIO), issued the following statement supporting legislation introduced today by Sen. Rick Santorum (R-Pa.) and Rep. Melissa Hart (R-Pa.). The “Biotechnology Future Investment Expansion (BIOFIX) Act of 2005” would amend Section 382 of the Internal Revenue Code. It will 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:
“This legislation updates our tax laws to recognize the uniquely capital-intensive nature of the biotechnology industry. BIO does not believe that the tax code was intended to penalize small, startup companies that must rely on multiple equity financings to support important research into life-saving and life-enhancing drugs. The bill maintains appropriate restrictions to prevent fraudulent ‘trafficking’ in net operating losses,” Greenwood said.
“Clearly, Senator Santorum and Representative Hart understand well the importance of equitable tax treatment to emerging biotechnology companies and the future economic growth and job creation that come from a healthy biotechnology industry,” Greenwood concluded.
For further information on tax issues that impact biotechnology companies, please visit the Capital Formation section of BIO’s website, http://www.bio.org/capformation/policy/.
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.