Economics
Drugmakers' Rare Disease R&D Incentives Cut in GOP Tax Bill
- Plan would eliminate 50% tax credit for rare disease reasearch
- GOP bill released Thursday would cut overall corporate rate
Photographer: Photographer: Nicky Loh/Bloomberg
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Drug and biotechnology companies researching treatments for rare diseases would lose a tax incentive that helps lower the cost of their development programs under the Republican tax bill unveiled Thursday.
Under current law, drug manufacturers can claim a tax credit for 50 percent of the costs of clinical testing expenses for treatments for rare diseases and conditions, according to a summary of the provision. The GOP bill would eliminate that credit for “certain drugs for rare diseases or conditions,” raising $54 billion in revenue over the 10-year period starting in 2018, according to the summary.