Episode 57
Biotech Hangout
00:00
The Importance of Deducting R&D Expenses
A new act that was proposed, which basically started in 2022, means that businesses can no longer deduct R&D expenses in the same taxable year. Now as a biotech, you need to amortize deductions over five years for domestic expenditures or over 15 years for foreign expenditures. Even very small companies without a product on the market may find themselves with a tax liability since they can no longer use immediate expensing to fully offset payments from things like collaboration agreements or even grants. So there's two bipartisan bills being proposed. One of them is called S866 and the other one is HR 2673. And what we'd really like you to do is let your representatives know that these are important.
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