The pharmaceutical, biotech and medical device industries stand to benefit from President Obama's proposal to expand the research and development tax credit, according to Wall Street analysts.
Obama is pressing Congress to expand the tax credit by about 20 percent and make it permanent. First introduced in 1981, the credit has been extended 13 times and expired eight times — most recently on Dec. 31, 2009.
"AdvaMed has long supported making the R&D tax credit permanent," said Brett Loper, senior executive vice president for government affairs for the Advanced Medical Technology Association. "We look forward to seeing the details of this new proposal and the other tax changes being discussed today to determine how they will affect America’s medical technology companies."
In a statement Tuesday, Pharmaceutical Research and Manufacturers of America also expressed support for the tax credit. But PhRMA also made it clear that it has not taken a position on Obama's specific proposal.
"For America to keep its global leadership in medical innovation, it is critical that public policies and programs support continued research and development (R&D) of new medicines. Investments made in R&D help support the economy and U.S. jobs, including jobs in the U.S.-based biopharmaceutical sector," PhRMA said in a statement. "America's biopharmaceutical research companies — who lead the world in the discovery of new medicines for patients suffering from disease — look forward to working with the Administration and Congress on finding long-term policy solutions that can help ensure that America keeps its innovative edge."
CLARIFICATION: This post was updated on Sept. 9 to clarify that PhRMA has not taken a position on Obama's specific proposal.