Weekly Policy Update: CBSA Advocates for Additional Relief for Life Sciences Startups + Growth Companies
By: Colorado BioScience Association Date: 08/07/2020
CBSA supports H.R. 7917, the IGNITE American Innovation Act, bipartisan legislation recently introduced to ensure innovative and entrepreneurial companies can access the necessary liquidity to continue developing cutting-edge treatments and technologies.
While we greatly appreciate the relief programs and tax provisions that have been created to support businesses during this crisis, many life sciences companies that do not have taxable income were not able to benefit from some of these provisions. H.R. 7917 would allow small and mid-size companies who were not able to utilize the CARES Act tax provisions to monetize up to $25 million accumulated tax assets. In addition, the bill will provide a bonus for tax assets generated by research and production of products that will detect, prevent, or treat COVID-19.
H.R. 7919 would:
- Allow growth companies to monetize up to $100 million worth of accumulated net operating losses (NOLs) which were generated within the previous five years at the 21 percent corporate rate;
- Double the value for NOLs generated by products to prevent, diagnose, or treat COVID-19;
- Allow growth companies to monetize R&D credits;
- Double the value of R&D credits generated by research into products to prevent, diagnose, or treat COVID-19.
Congress is currently negotiating the fourth major legislative package to address the health and economic crisis, which will likely be the last before the end of the year. CBSA and our national industry partners see the next package as the best opportunity to advance the IGNITE American Innovation Act and are working to generate widespread support in Congress. CBSA is engaging all members of the Colorado delegation, urging them to support the bill and asking House members to be a cosponsor.
Your Support Needed Now
CBSA needs members of our life sciences ecosystem to email their Member of Congress and ask them to cosponsor H.R. 7917. It’s important that our federal delegation hears from you about how this bill will specifically benefit companies in their district, many of which are developing innovative solutions to detect, prevent, or treat COVID-19.