This week, U.S. Rep. Vern Buchanan, R-Fla., showcased his “Start-Ups for Cures Act” and “More Cures Act.”
After introducing the bills last week, Buchanan weighed in on his proposals this week, noting they will “encourage the development of new, American-made medical therapies and cures while strengthening our domestic medical supply chain.”
“From the early days of the COVID pandemic it became clear how dangerously reliant we are on China and the global supply chain for critical lifesaving treatments and cures,” said Buchanan. “The Start-ups for Cures Act and the More Cures Act will help spur American innovation and place our country back at the top of the global leaderboard for developing new cures.”
“The Start-ups for Cures Act creates a refundable tax credit for a portion of research and development (R&D) costs that are incurred by small businesses engaging in medical research. A business is eligible for this refundable tax credit if their gross receipts total less than $1 million and they are engaging in research that includes the development of life-saving drugs and treatments, as well as research on secondary and tertiary materials that help administer these drugs. This will allow small companies to put more of their capital toward working to prepare for the health care challenges of tomorrow,” the congressman’s office noted.
“Additionally, the More Cures Act creates a 14 percent bonus R&D tax credit for companies engaged in drug development research. Expenditures that would qualify a business for the tax credit include research on new life-saving drugs and materials. This bonus tax credit would apply on top of the R&D credit that is already available to companies,” Buchanan’s office added.
The Biotechnology Innovation Organization (BIO) is backing the proposals as is U.S. Rep. Mike Kelly, R-Penn. The bills were sent to the U.S. House Ways and Means Committee on which Buchanan serves. Neither proposal has a companion bill in the U.S. Senate.
Buchanan leads Republicans on the Ways and Means Committee’s Health Subcommittee and is a co-chair of U.S. House Republican Leader Kevin McCarthy’s, R-Calif., Healthy Future Task Force.