SAN DIEGO--(BUSINESS WIRE)--Biocom, the association representing the life science industry of California, issued the following statement regarding passage of H.R.1, the “Tax Cuts and Jobs Act” in the U.S. House of Representatives and Senate today.
“Today, the Senate, followed by the House, passed major legislation that reforms our corporate and individual tax code. Biocom applauds Congress for permanently reducing the corporate tax rate to 21 percent and moving the U.S. to a territorial tax system, where the overseas profits of U.S. companies would no longer be subject to U.S. tax. These landmark provisions will help make California companies be more successful and competitive at home and abroad,” said Joe Panetta, president and CEO of Biocom.
“We also applaud Congress for retaining both the research and development (R&D) tax credit and the orphan drug tax credit (ODTC), which are essential to the sustainability and growth of California’s innovation ecosystem by incentivizing investment in R&D and allowing companies to better plan for their development. While we are disappointed that the ODTC rate was reduced from 50 percent to 25 percent of eligible expenses, we look forward to working with legislators, including future changes, to ensure that the ODTC continues to incentivize much-needed research to diagnose and treat rare disease patients,” added Panetta.
“Biocom also urges Congress to consider making amendments to a prejudicial provision which caps state and local tax (SALT) deductions for income and property at $10,000 per individual. These limitations would increase the cost of living across the board in high-cost states, which disproportionately disadvantages California – home to the overwhelming majority of life science employees - and make it more difficult for companies to attract and retain employees,” concluded Panetta.
Biocom is the largest, most experienced leader and advocate for California’s life science sector. We work on behalf of more than 1,000 members to drive public policy, build an enviable network of industry leaders, create access to capital, introduce cutting-edge STEM education programs, and create robust value-driven purchasing programs.
Founded in 1995 in San Diego, Biocom provides the strongest public voice to research institutions and companies that fuel the local and state-wide economy. Our goal is simple: to help our members produce novel solutions that improve the human condition. In addition to its San Diego headquarters, Biocom operates a core office serving the Los Angeles market, satellite offices in Washington, D.C. and Tokyo, and has a continuous staff presence in the San Francisco Bay area and Sacramento. Our broad membership benefits apply to biotechnology, pharmaceutical, medical device, genomics and diagnostics companies of all sizes, as well as to research universities and institutes, clinical research organizations, investors and service providers.