Useful Stats: Qualifying Therapeutic Discovery Project Grants and Credits by State, FY 2009-10

The Internal Revenue Service (IRS) has released the list of projects approved for Qualifying Therapeutic Discover Project grants and credits. Introduced in the Patient Protection and Affordable Care Act passed earlier this year, the program supports projects that show a reasonable potential to create new therapies, lower health care costs or advance the cause of curing cancer within the next 30 years. The credit or grant covers up to 50 percent of the cost of qualifying biomedical research at firms with no more than 250 employees. Grants also were made available in lieu of credits, and, in the end, outnumbered credits 50:1.

Under the program, a total amount of $1 billion was allocated for credits and grants (see the May 5 and May 26, 2010 issues of the Digest). Although applicants could apply for up to $5 million, the IRS and National Institutes of Health limited the maximum award amount to $244, 479.24 due to the high volume and quality of applications. Instead, many companies qualified for multiple awards given to support individual research projects.

Read more at: http://www.irs.gov/businesses/small/article/0,,id=228690,00.html.

SSTI has prepared a table of recipients of both Qualifying Therapeutic Discovery Project Grants and Credits by state. The table presents the number of projects in each state that received grants and were certified as eligible for credits, as well as the total dollar value of those grants and credits. In some cases, companies received multiple grants and certifications for separate projects. These awards are reported as additional projects. If a single project received grants or certifications for both 2009 and 2010, these are reported as a single recipient project.

A total of 4516 Qualifying Therapeutic Discovery Project Grants were awarded, together worth $981.3 million. California led the country and received more than a quarter of the grants and total grant dollars. California companies were awarded 1247 grants, totalling $278.1 million. California, Massachusetts, Maryland, New Jersey and Pennsylvania, the top five states for the grants, together received 55 percent of the total number of grants and 56 percent of total dollars.

Ninety projects in 28 states (including the District of Columbia) were certified to receive Qualifying Therapeutic Discovery Project Credits in 2009 and 2010. California and Massachusetts were the top two states, with companies in those states qualifying for a third of the total dollar amount of credits. In California, 14 companies were certified for $3.3 million in credits and, in Massachusetts, 12 companies were certified for $2.6 million. Other top states include Arizona, Pennsylvania and Texas.

View the table at: http://www.ssti.org/Digest/Tables/111010t.htm.