Qualifying Therapeutic Discovery Project Credit
The credit/grant is a tax benefit targeted to therapeutic discovery projects that show a reasonable potential to: Result in new therapies to treat
Allocation of the credit/grant will also take into consideration which projects show the greatest potential to create and sustain high-quality, high-paying U.S.
jobs and to advance U.S.
competitiveness in life, biological and medical sciences.
The Department of Treasury is a steward of United States economic and financial systems, and promotes conditions for prosperity and stability in the U.S., and encourages prosperity and stability in the rest of the world.
Program Accomplishments
Not Applicable.
Uses and Use Restrictions
Grant funds can be used to cover qualified investments as defined by Section 48D(b) of the Code.
An investment will be considered a qualified investment only if that investment is made in a taxable year beginning in 2009 or 2010.
Eligibility Requirements
Applicant Eligibility
The credit/grant covers up to 50 percent of a taxpayer s qualified investment.
Beneficiary Eligibility
The credit/grant is only available to taxpayers with no more than 250 employees.
Credentials/Documentation
Documentation will be made using IRS Form 8942, "Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program" and the Department of Health and Human Services "Qualifying Therapeutic Discovery Project Program Project Information Memorandum". This program is excluded from coverage under OMB Circular No. A-87.
Aplication and Award Process
Preapplication Coordination
Preapplication coordination is not applicable.
Environmental impact information is not required for this program.
This program is excluded from coverage under E.O.
12372.
Application Procedures
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedures
All complete and eligibility applications will be evaluated by the Department of Health and Human Services and the Internal Revenue Service. Applicants will be notified of their acceptance or rejection of a grant award by letter sent via U.S. Postal Service.
Deadlines
Contact the headquarters or regional office, as appropriate, for application deadlines.
Authorization
Patient Protection and Affordable Care Act of 2010 / Section 9023 (a), Executive Order Under Section 48D of the Internal Revenue Code, Public Law 111-148.
Range of Approval/Disapproval Time
From 30 to 60 days.
Appeals
Not Applicable.
Renewals
Not Applicable.
Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
A project s qualified investment will be considered to include any qualified investment made or expected to be made in a taxable year beginning in 2009 or 2010 or both. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements
Reports
Not Applicable.
Audits
Not Applicable.
Records
Grant recipients are required to have a record keeping system in place to support all information reported in Form 8942 Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program and the related Project Information Memorandum.
Financial Information
Account Identification
00-0000-0-0-000 - Budget Account Code Pending.
Obigations
(Project Grants) FY 09 $0; FY 10 est $0; FY 11 est $1,000,000,000 -
Range and Average of Financial Assistance
The amount of the credit/grant which a taxpayer may be allocated will be limited to a maximum of $5 million per taxpayer, and the total amount of credits available to all taxpayers is limited to $1 billion.
Regulations, Guidelines, and Literature
Internal Revenue Service Notice 2010-45
Information Contacts
Regional or Local Office
None.
Headquarters Office
Candace F. Fisher, Internal Revenue Service, 201 W. Rivercenter Blvd., ATTN: QTDP Stop 5701G
, Covington, Kentucky 41011 Email: candace.f.fisher@irs.gov Phone: (651) 312-2109.
Criteria for Selecting Proposals
The Internal Revenue Service will certify an eligible taxpayer s qualified investment associated with a qualifying therapeutic discovery project under the Qualifying Therapeutic Discovery Project Program, for which an application has been submitted only if:
(1) The Department of Health and Human Services (HHS) determines that the taxpayer s project is a qualifying therapeutic discovery project;
(2) HHS determines that the taxpayer s project shows reasonable potential (a) to result in new therapies (i) to treat areas of unmet medical need, or (ii) to prevent, detect, or treat chronic or acute diseases and conditions, (b) to reduce long-term health care costs in the United States, or (c) to significantly advance the goal of curing cancer within the 30 year period beginning on May 21, 2010; and
(3) The Internal Revenue Service determines that the taxpayer s project is among those projects that have the greatest potential (a) to create and sustain (directly or indirectly) high quality, high-paying jobs in the United States, and (b) to advance United States competitiveness in the fields of life, biological, and medical sciences. The Internal Revenue Service will determine whether to certify all or a portion of a taxpayer s qualified investment eligible for the therapeutic discovery project grant after the Department of Health and Human Services has completed it"s review of all application submitted by eligible taxpayers.
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