FDAnews Drug Daily Bulletin

The $700 billion financial bailout package that was signed into law last week reauthorizes, until Dec. 31, 2009, the R&D tax credit supported by drugmakers and other industries. Under the bill, the tax credit is retroactive for the 2008 tax year. The credit, which Congress allowed to expire last year, was attached to the bailout package by the Senate along with other tax breaks after the House rejected the initial $700 billion bill. The legislation strengthens the credit for the 2009 tax year by increasing the alternative simplified credit formula rate from 12 percent to 14 percent, which would benefit some pharmaceutical companies, Monica McGuire, senior policy director at the National Association of Manufacturers and executive secretary of the R&D Credit Coalition, said.