HOUSTON, Nov. 16, 2010 /PRNewswire/ -- alliantgroup, a leading specialty tax advisor, announced today that over 98% of the Company's clients have been selected by the United States Department of Treasury to receive federal tax credits and tax-free grants for qualified biotech investments. On November 2, 2010, the Treasury Department announced the list of companies that qualified to receive part of the $1 billion available under the "Qualifying Therapeutic Discovery Project Credit" program. alliantgroup advised more winners than any other consultancy and 98% of the firm's clients received tax credits/grants under the program, compared to an overall success rate of only 60%.
"On behalf of alliantgroup, I want to congratulate each of our clients that were selected by the Treasury Department," said Dhaval Jadav, CEO of alliantgroup. "This was a complex and rigorous application and selection criteria. The successful results are a testament not only to the important work in the biotech field being done by our clients but also to the unique capabilities and hard work of the alliantgroup team which included scientific experts, legal/regulatory professionals and accountants," said Shane Frank, COO of alliantgroup.
The "Qualifying Therapeutic Discovery Project Credit" program was part of the Patient Protection and Affordable Care Act of 2010 and provides a 50% tax credit or grant to biotech, pharmaceutical and other healthcare companies for qualified investments by eligible companies in taxable years beginning in 2009 and in 2010 in connection with qualifying projects. Qualifying projects include those designed to:
- Treat or prevent diseases or conditions by conducting pre-clinical activities, clinical trials and clinical studies, or carrying out research protocols for the purpose of securing federal government approval by the FDA.
- Diagnose diseases or conditions or to determine molecular factors related to diseases or conditions by developing molecular diagnostics to guide therapeutic decisions.
- Develop a product, process or technology to further the delivery or administration of therapeutics.
Two of alliantgroup's clients had the following to say in regards to their QTDP grant awards:
Dennis Gauger, CFO of BSD Medical Corporation (Nasdaq: BSDM), noted, "The funding from the two grant awards will allow BSD to continue its goal of developing technology and products for hyperthermia and thermal ablation therapies through multiple techniques, which collectively allow cancer to be treated virtually anywhere in the body."
"The funding from the grant award will allow Calypte to help fight the spread of HIV. We will also be using the funding to hire new personnel and perform clinical trials," stated Guru Sankar, COO of Calypte Biomedical Corporation (Pink Sheets: CBMC).
"This program, spearheaded by Senators Menendez, Cantwell and Kerry, was a little known but key part of the healthcare legislation passed earlier this year," added Dean Zerbe, National Managing Director at alliantgroup. "The breakthrough work of many of this country's biotech firms would certainly benefit from the renewal and expansion of this important program by the next Congress. Such action will also translate immediately into creating and sustaining high quality jobs in the United States."
"In our work with biotech and pharma firms across the country, we have found that the grant part of the 'Qualifying Therapeutic Discovery Project Credit' program is particularly important," stated David Ji, Managing Director of the Biotech Practice at alliantgroup. "A significant number of biotech firms that are doing work that would otherwise qualify for the regular R&D tax credit don't get any value from it because they have tax losses."
alliantgroup is the nation's premier provider of specialty tax services. Headquartered in Houston, TX, alliantgroup works with CPAs and their clients to ensure that they receive the full benefits of all available federal and state government sponsored tax credit and incentive programs, such as the research and development tax credit, export tax incentives, manufacturing tax incentives, federal and state hiring credits, sales and use tax refund reviews, and a dedicated tax controversy services team.