The Domestic Research Enhancement Act of 2017 (H.R. 1234), which modernizes the R&D tax credit to recognize the essential role contract research now plays in the development of new pharmaceuticals, biologics and medical devices, has been introduced by Rep. Pat Meehan (R-PA) and co-sponsors Rep. George Holding (R-NC) and G.K. Butterfield (D-NC).
“The life sciences industry is a very important economic driver in both Pennsylvania and North Carolina and contract CROs are a major contributor with ACRO members employing more than 20,000 research staff in these two states,” said ACRO Chairman John Hubbard, Ph.D., president and CEO of Bioclinica, headquartered in Doylestown, Pennsylvania. “We commend Reps. Meehan, Holding and Butterfield for introducing legislation that promotes good jobs and domestic innovation.”
The legislation would enable firms conducting contract research across industries to claim a portion of the R&D Tax Credit that is now abandoned when a research sponsor, seeking greater efficiency, employs a CRO.
“In many ways, North Carolina was the birthplace of the CRO industry,” said Cynthia Verst, president of Clinical Operations at QuintilesIMS and an ACRO Board member. “QuintilesIMS is extremely proud of the positive impact CROs have in the state and the 100+ countries where we conduct operations.”
“The life sciences sector is one of the largest employers in southeastern Pennsylvania and a prime driver of our economic growth and dynamism,” said Congressman Meehan. “Contract research firms play a critical role, employing some 6,000 Pennsylvanians. The Domestic Research Enhancement Act will help make American life sciences firms more competitive on the global stage, spur more investment and innovation into groundbreaking new cures, and strengthen our regional economy.”
Meehan sits on the key House Ways and Means Committee, the body in the House of Representatives responsible for tax policy.
Hubbard said, “The Domestic Research Enhancement Act of 2017 will enable the industry to continue to grow in the state, supporting jobs, innovation and the homegrown development of new treatments and cures for patients in need.”