Overview

On May 21, 2010, by Internal Revenue Service Notice 2010-45
(“Notice”), the U.S. Department of the Treasury (“Treasury”)
announced the establishment of the Qualifying Therapeutic Discovery
Project program pursuant to Section 9023(a) of the Patient Protection
and Affordable Care Act of 2010 (“Affordable Care Act”). Under the
Qualifying Therapeutic Discovery Project program, the Internal
Revenue Service (“the Service”), in consultation with the Department
of Health and Human Services (“HHS”), will certify $1 billion in
nonrefundable tax credits or, if elected, grants in lieu of credits for
qualified investments in projects that show significant potential to
produce new and cost-saving therapies, create and sustain good jobs,
and increase US competitiveness in the fields of life, biological and
medical sciences. The Notice also provides guidance to applicants
with respect to the eligibility requirements, application procedures and
key dates, and selection criteria for qualifying therapeutic discovery
project credits. These guidelines, terms and conditions, as well as
detailed information with respect to the format and content of
applications for certification, are available at http://www.irs.gov/pub/irsdrop/
n-10-45.pdf.