As congressional leaders prepare to lock themselves away and hammer out a final tax bill, one thing is clear: Big Pharma, like the rest of corporate America, is going to get a big break.
But there are devilish details the drug industry will be tracking, including the fates of an oft-used tax credit and a long-promised provision that would make it cheaper for multinational companies to bring overseas cash back to the U.S.
Among the top priorities for BIO, biotechnology’s biggest lobbying group, is the orphan drug tax credit, which allows biopharma companies to deduct 50 percent of the costs of running clinical trials for therapeutics targeting rare diseases. The House’s tax bill eliminates the credit entirely, while the Senate version cuts the deduction down to 27.5 percent.
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