IRS application forms and instructions relating to the Qualifying Therapeutic Discovery Project ("QTDP") tax credit, created by the Patient Protection and Affordable Care Act of 2010, are now available on the IRS website. This tax incentive will provide either a tax credit or a direct grant to eligible taxpayers of up to $5 million. Small to mid-sized companies that employee no more than 250 people and have incurred qualified investment expenses for a QTDP since December 31, 2008 are eligible to apply.
Applications for the QTDP credit require submission of IRS Form 8942, Application for Certification of Qualified Investments Eligible for Credits and Grants Under the Qualifying Therapeutic Discovery Project Program, and a Project Information Memorandum written in accordance with the guidelines found in the Instructions to Form 8942 and specified in Appendix A of IRS Notice 2010-45. All applications for the QTDP credit must be postmarked by July 21, 2010. IRS notification of approval or denial of the QTDP credit applications will be made no later than October 29, 2010; approved applicants will also be notified of the credit or grant amount awarded.