The Internal Revenue Service is now accepting applications from small businesses for tax credits and grants for the development of new medical therapies. The healthcare reform law sets aside $1 billion for credits ad grants to cover up to 50 percent of the cost of qualifying biomedical research, up to a maximum credit of $5 million per firm.
The credits and grants are only available to firms with 250 or fewer employees, for investments made in 2009 and 2010. They are reserved for projects that show potential to produce new therapies, reduce long-term health care costs, or significantly advance the goal of curing cancer within the next 30 years.
“This new tax credit was designed to promote medical research that could improve health and save lives," IRS Commissioner Doug Shulman said in a statement. "I encourage companies that are involved in this groundbreaking type of work to apply."
Applications must be postmarked no later than July 21, 2010. The IRS will issue certifications by the end of October, based on the determinations made by Department of Health and Human Services.