Qualifying Therapeutic Discovery Project Credit
Section 9023(e) of the Affordable Care Act provides that taxpayers may receive grants in lieu of the Qualified Therapeutic Discovery Project Credit. The credit/grant is a tax benefit targeted to therapeutic discovery projects that show a reasonable potential to: Result in new therapies to treat areas of unmet medical need or prevent, detect or treat chronic or acute diseases and conditions; Reduce the long-term growth of health care costs in the United States; or Significantly advance the goal of curing cancer within 30 years. Allocation of the credit/grant will also take into consideration which projects show the greatest potential to create and sustain high-quality, high-paying U.S. jobs and to advance U.S. competitiveness in life, biological and medical sciences.
General information about this opportunity
Last Known Status
Deleted 01/15/2013 (Archived.)
Agency: Department of the Treasury
Office: Internal Revenue Service (IRS)
Type(s) of Assistance Offered
Project Grants; Project Grants (Special)
Patient Protection and Affordable Care Act of 2010 / Section 9023 (a), Executive Order Under Section 48D of the Internal Revenue Code, Public Law 111-148.
Who is eligible to apply/benefit from this assistance?
The credit/grant covers up to 50 percent of a taxpayerâ€™s qualified investment.
The credit/grant is only available to taxpayers with no more than 250 employees.
Documentation will be made using IRS Form 8942, â€śApplication for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Programâ€ť and the Department of Health and Human Servicesâ€™ â€śQualifying Therapeutic Discovery Project Program Project Information Memorandumâ€ť. This program is excluded from coverage under OMB Circular No. A-87.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110.
All complete and eligibility applications will be evaluated by the Department of Health and Human Services and the Internal Revenue Service. Applicants will be notified of their acceptance or rejection of a grant award by letter sent via U.S. Postal Service.
Contact the headquarters or regional office, as appropriate, for application deadlines.
Approval/Disapproval Decision Time
From 30 to 60 days.
How are proposals selected?
The Internal Revenue Service will certify an eligible taxpayerâ€™s qualified investment associated with a qualifying therapeutic discovery project under the Qualifying Therapeutic Discovery Project Program, for which an application has been submitted only if:
(1) The Department of Health and Human Services (HHS) determines that the taxpayerâ€™s project is a qualifying therapeutic discovery project;
(2) HHS determines that the taxpayerâ€™s project shows reasonable potential (a) to result in new therapies (i) to treat areas of unmet medical need, or (ii) to prevent, detect, or treat chronic or acute diseases and conditions, (b) to reduce long-term health care costs in the United States, or (c) to significantly advance the goal of curing cancer within the 30 year period beginning on May 21, 2010; and
(3) The Internal Revenue Service determines that the taxpayerâ€™s project is among those projects that have the greatest potential (a) to create and sustain (directly or indirectly) high quality, high-paying jobs in the United States, and (b) to advance United States competitiveness in the fields of life, biological, and medical sciences. The Internal Revenue Service will determine whether to certify all or a portion of a taxpayerâ€™s qualified investment eligible for the therapeutic discovery project grant after the Department of Health and Human Services has completed it's review of all application submitted by eligible taxpayers.
How may assistance be used?
Grant funds can be used to cover qualified investments as defined by Section 48D(b) of the Code. An investment will be considered a qualified investment only if that investment is made in a taxable year beginning in 2009 or 2010.
What are the requirements after being awarded this opportunity?
Grant recipients are required to have a record keeping system in place to support all information reported in Form 8942 Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program and the related Project Information Memorandum.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
A projectâ€™s qualified investment will be considered to include any qualified investment made or expected to be made in a taxable year beginning in 2009 or 2010 or both. Method of awarding/releasing assistance: lump sum.
Who do I contact about this opportunity?
Regional or Local Office
Candace F. Fisher, Internal Revenue Service, 201 W. Rivercenter Blvd., ATTN: QTDP Stop 5701G
, Covington, Kentucky 41011 Email: email@example.com
Phone: (651) 312-2109.
No Data Available
00-0000-0-0-000 - Budget Account Code Pending.
(Project Grants) FY 09 $0; FY 10 $0; FY 11 $1,000,000,000 -
Range and Average of Financial Assistance
The amount of the credit/grant which a taxpayer may be allocated will be limited to a maximum of $5 million per taxpayer, and the total amount of credits available to all taxpayers is limited to $1 billion.
Regulations, Guidelines and Literature
Internal Revenue Service Notice 2010-45
Examples of Funded Projects