WASHINGTON--(BUSINESS WIRE)--Today, the Biotechnology Industry Organization (BIO) applauds Senator Tom Carper (D-DE) and Senator Pat Toomey (R-PA) for introducing the COMPETE Act, which will spur biotech capital formation and stimulate innovative research and development.
The following statement can be attributed to Jim Greenwood, President and CEO, BIO:
“BIO strongly supports provisions within the COMPETE Act to make the R&D tax credit permanent while also increasing the credit rate. The R&D tax credit has played a vital role in supporting the search for cures and breakthrough medicines. However, constant uncertainty about whether the R&D credit will be extended makes tax planning extremely difficult for companies preparing their development program.
“We also support the bill’s increased credit for highly innovative research expenses, an exciting proposal that will reward the companies leading the way in America’s 21st century innovation economy.
“Additionally, we support the COMPETE Act’s efforts to encourage investment in early-stage, R&D-centric businesses. By providing an incentive for investors to partner with a young research company, the COMPETE Act stimulates R&D investment at the earliest, most-critical stages of a company’s research. The R&D Partnership Structures allowed by the legislation will lead to long-term investment strategies critical to the success of innovative research.
“This legislation will encourage investment in early-stage businesses in a wide swath of industries, invigorating both biotech R&D and scientific progress being made by small business innovators across the country. These research-intensive companies rely on private investment to support their groundbreaking R&D – and the investment dollars that fund the decade-long, billion-dollar biotech pipeline are supporting the next generation of breakthrough technologies.
“The economic effects of scientific advancement are striking. Innovative biotech companies at all stages of the development process are working toward next generation technologies to heal, fuel, and feed the world. We look forward to working with Congress on this critical legislation to support early-stage research critical to bringing breakthroughs to patients.”
The biotech industry already has an employment impact of over 7.5 million Americans, the vast majority of whom are working for growing businesses. An independent study of the R&D Partnership Structures proposal revealed that it will create 156,000 additional jobs and spur increased investment by $10.3 billion per year. These jobs are essential for America’s economic health and competitiveness on the world stage.
For more information on BIO and the biotechnology industry, please visit http://www.bio.org.
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.
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