Wednesday, December 07, 2005

Pennsylvania Lawmakers Talk About Biotech Measure

Biotechnology Future Investment Expansion Act of 2005, also known as BIOFIX...

Two Pennsylvania lawmakers who wrote legislation that they say can help spur research and development in biotechnology met with industry leaders Monday. Sen. Rick Santorum, a Penn Hills Republican, and Rep. Melissa Hart, a Bradford Woods Republican, earlier this year introduced the Biotechnology Future Investment Expansion Act of 2005, also known as BIOFIX, the federal legislation modifying Section 382 of the tax code to allow biotech firms to utilize tax breaks on their net operating losses. Currently, to help pay for the process of getting drugs and treatments approved, companies often have to undertake equity financing that triggers ownership changes, preventing the companies from claiming net operating losses. It takes about 10 years to develop a new drug or treatment and the cost is between $500 million and $800 million. "Currently, limitations imposed in the tax code prevent many biotech startups from taking advantage of tax incentives," Santorum said in a statement. "By updating this provision in the tax code to meet the needs of the biotechnology sector, companies are encouraged to expand their research," he said. Steve Zylstra of the Pittsburgh Technology Council was among the attendees for the roundtable discussion at the Pittsburgh Life Sciences Greenhouse in Hazelwood. He said the measure could "encourage new investment." "The BIOFIX Act of 2005 attempts to foster innovation, spur research and development and create cutting-edge high technology jobs by removing an unnecessary barrier in our federal tax code currently hampering the development of emerging biotechnology companies," he said in a statement.

link to article from biospace.com

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