PA Life Sciences Get Boost from Targeted R&D Analysis

How insights can deliver a win-win for the life sciences industry and Pennsylvania’s Legislature

This week’s Pittsburgh Life Sciences Week kicks off a series of events focused on fostering innovation and integration between life sciences and business.

Pennsylvania is home to major medical breakthroughs and discoveries, thanks in part to a supportive business climate for innovative incentive programs such as the research and development (R&D) tax credit. This program provides economic incentive for new and established life sciences companies conducting cutting-edge research here in Pennsylvania. It also helps offset the cost of expensive research projects such as clinical trials.

The R&D tax credit is vital to the commonwealth’s ability to remain competitive in the global economy because it encourages and rewards economic growth, and life sciences factor heavily into that growth.

Mapping out insights for PA’s life sciences sector

Each year, Bravo Group analyzes the Department of Revenue reports for the R&D tax credit awards to life sciences companies and geomaps them by state House and Senate district.

With these maps, we show legislators across the state how many companies in their district or neighboring districts are performing medical research and receiving the tax credit.

Year after year, budget deficits in Pennsylvania are a common occurrence, which means all tax credits are scrutinized by legislators. That makes the right approach to this analysis critical for the Legislature and the state’s life sciences companies and technology partners, and it helps both sets of stakeholders build toward long-term sustainability.

This tax credit is available to any life sciences company incurring qualified expenses for research and development activities performed in Pennsylvania. The R&D tax credit is calculated using the increase over the company’s base-year research expenses. For larger companies, that tax credit is calculated at 10 percent, and for smaller companies the rate is 20 percent.  

Unused R&D tax credits can be sold on the open market by any company looking to advance and grow its business by filing an application with the Pennsylvania Department of Community & Economic Development.  

Advocates have long called for an increase in the R&D tax credit to $100 million because this is one of the few tax credit programs that rewards a year-over-year R&D spending increase by companies, which truly drives economic growth in the commonwealth.  

As advocates for the PA life sciences community — biotechnology, pharmaceuticals, research — we’re committed to advancing the industry globally. Our models of data exploration and analysis bring a unique perspective to the evolving life sciences landscape, its business opportunities and the policymakers who play a role in their funding.

Check out the innovation happening in your legislative district! Click to view: PA House MapPA Senate Map.

 

 

Ted Piper