Weekly Policy Update: Congressional Tax Package Could Support Further Industry Growth

CBSA is committed to keeping our community updated on issues that impact life sciences. Our Policy + Advocacy team is reviewing newly proposed legislation that could directly affect life sciences companies. This educational piece provides an overview of current bills. CBSA is reviewing the introduced bills now and will evaluate whether to take a formal position at the appropriate time, in consultation with our Policy Committee and advocacy partners at the federal level.

Earlier this week, Republican members of the Ways and Means Committee reintroduced a package of legislation which is intended to secure medical supply chains and invest in the cures and treatments of the future.

  • The American Innovation Act aims to remove some of the initial barriers to starting new drug companies by providing special tax treatment for startup costs and preserving tax attributes like R&D credits. The original bill passed the House in 2018 with broad bipartisan support.
  • The Startups for Cures Act would create an R&D incentive for small biotech companies engaged in infectious disease drug development.
  • The More Cures Act would create a 14% bonus R&D tax credit for companies engaged in drug development research, particularly on new life-saving drugs and materials.
  • The Infectious Disease Therapies Research and Innovation Act  would amend the tax code to help smaller firms attract more investment for critical therapies and vaccines earlier on in the R&D process.
  • The American-Made Medicine Act focuses on three tax credits:
    • Domestic medical and drug manufacturing tax credit – lowers the tax rate on income from domestic manufacturing and sales of pharmaceutical ingredients to encourage domestic production of these products.
    • Advanced medical manufacturing equipment credit – creates a 30 percent investment tax credit for investments in equipment and machinery used to manufacture drugs and devices here in the U.S.
    • Medical manufacturing EPA compliance credit – creates a 30 percent investment tax credit for equipment and property that is used to meet emissions standards under the Clean Air Act or Clean Water Act.
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