Neglected Disease Tax Credit
Genzyme proposes a bill for a Neglected Disease Research Tax Credit geared toward pharmaceutical companies. The bill proposes a 50% tax credit for non-clinical research expenditure related to neglected disease. To receive the credit companies must donate their Intellectual Property (IP) rights to a royalty free licensing pool, but would be free to use the IP for other commercial research initiatives within their organization. The proposal intends to reduce the financial burden of philanthropic research for pharmaceutical companies. The bill has not yet been incorporated into any formal tax legislation.
Geraghty, James A. “Expanding the Biopharmaceutical Industry’s Involvement in Fighting Neglected Diseases.” Health Affairs Vol. 28, No. 6 (2009): 1774 – 1777. Available here.
U.S. Congress. House. Text of H.R. 3156. – To amend the Internal Revenue Code of 1986 to provide a credit against tax for expenses paid or incurred in non-clinical research for neglected diseases. 111th Congress, 1st Session, H.R. 3156 (9 July 2009). Available here.