A notice from the IRS regarding a "program open to projects with potential to produce new, cost-saving therapies."

As part of the Affordable Care Act, small firms (no more than 250 employees) may begin applying for certification for grants and tax credits under the Qualifying Therapeutic Discovery Project Program.   This program is available for projects with significant potential to produce cost-saving therapies, U.S. jobs, and increase U.S. competitiveness in the health care field.  It is mainly focused on projects with the goals of reducing long-term health care costs or advancing the goal of curing cancer within the next 30 years. 

This credit or grant can cover up to 50% of the cost of biomedical research (if it qualifies), or a maximum per firm of $1 million, or $1 billion overall.  The credits and grants are available for investments made in 2009 and 2010. 

To apply use Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program, and its accompanying instructions.  Make sure that your applications are postmarked (Archer Group suggests sending correspondence to the IRS certified, return receipt requested) no later than July 21, 2010. 

After the Department of Health and Human Services reviews applications based on the above mentions criteria, it will select only projects that show reasonable potential to meet these goals.  These projects will be certified as eligible to receive the credit or grant.

IRS Commissioner Doug Shulman says, "This new tax credit was designed to promote medical research that could improve health and save lives," he goes on to say, "I encourage companies that are involved in this groundbreaking type of work to apply."

July 21 is coming up quickly, so make sure to review the program and its requirements and send in your application to the IRS promptly.