On Friday, June 18, the IRS and HHS released application materials related to the Qualifying Therapeutic Discovery Project program (QTDP) which was established under the Patient Protection and Affordable Care Act. The QTDP allows small companies that undertake certain biomedical research projects to apply for and receive tax credits or grants of up to 50 percent of the qualified investment made toward such research. The application materials released on Friday include IRS Form 8942 and the accompanying Project Information Memorandum form. The IRS will review Form 8942 to determine whether the company and its stated investment meet the statutory requirements for the program, and also whether the project is likely to create jobs and increase competitiveness in the United States. HHS, through the NIH, will review the information provided in the Project Information Memorandum to determine whether a project meets the definition of a “qualifying” research project, if so, whether it shows a “reasonable potential” to result in new therapies, reduce long-term health care costs, or advance the goal of curing cancer. With the release of these application forms, the IRS has officially begun to accept applications for certification under the program. Completed applications are due to IRS by no later than July 21, 2010. The IRS expects to issue certifications for approved research projects by the end of October. IRS posted the following application documents to its Web site, in addition to its press release—
HHS posted the following application-related documents to the the NIH Office of Extramural Research Web site—
- Project Information Memorandum
- Several documents that describe the process by which HHS will review and “score” applications according to the specified criteria, including the QTDP Reviewer Response Sheet and a flowchart of the QTDP Review Process.
All of the application materials, along with several new Q&A documents, can be accessed on the NIH Web site.