Congressional and Senate GOP leaders have revealed the final version of the sweeping tax reform measure, the Tax Cuts and Jobs Act of 2017, and today, the President signed the bill into law.
This new law is expected to have significant impacts on corporate tax deductions and credits. With the vast majority of corporate tax deductions and credits going away, WithumSmith+Brown is happy to announce that the Orphan Drug credit is here to stay!
The Orphan Drug credit provides an incentive for pharmaceutical companies to seek treatments and cures for rare diseases and conditions affecting Americans.
While current law allows orphan drug manufacturers to claim a credit equal to 50% of the qualified clinical testing expenses, the provision, while maintaining the credit, does reduce the credit amount to 25% for tax years beginning after December 31, 2017. While the provision cuts the orphan drug credit in half, the ability to claim an orphan credit remains preserved and is taxpayer favorable, as initial drafts of the tax reform repealed the credit entirely.
Withum is here to provide a complimentary review to determine if taxpayers have any qualified clinical testing expenses worthy of pursuit.
Please reach out to one of our Orphan Drug experts to see what benefit your company might be missing out on. The initial consultation is free! What do you have to lose?
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