As part of the healthcare reform legislation, Congress created a $1 billion fund for therapeutic development projects that show the greatest potential to create jobs and advance competitiveness in life, biological and medical sciences.

 

The Qualifying Therapeutic Discovery Project provides a tax credit or grant equal to eligible costs and expenses for tax years 2009 and 2010. The maximum amount per grant is $244,479.25 with a maximum of $5 million per company. The credit is only available to companies with no more than 250 employees. The credit covers up to 50 percent of a company’s qualified investment.

 

The credit is a tax benefit targeted to therapeutic discovery projects that show a reasonable potential to result in new therapies to treat unmet medical needs; prevent, detect or treat chronic or acute diseases and conditions; reduce the long-term growth of healthcare costs in the United States; or significantly advance the goal of curing cancer within 30 years.

 

Since many drug developers are not yet profitable and therefore owe no taxes, most have elected to take the credit as a grant. Below is a list of grants and credits by state. A full list of grant and credit recipients is available here.

Therapeutic Discovery Project Program by State

Rank	State	Grant	Credit	Total Award
31	Alabama	3,708,305	294,385	4,002,689
22	Arizona	7,987,836	1,101,767	9,089,603
45	Arkansas	730,295	730,295
1	California	278,089,567	3,302,835	281,392,402
13	Colorado	22,776,519	488,958	23,265,477
18	Connecticut	14,062,824	1,029.021.50	14,062,824
38	Delaware	2,224,801	2,224,801
41	District of Columbia	720,091	695,594	1,415,685
11	Florida	26,216,722	341,964	26,558,686
43	Foreign	733,438		733,438
16	Georgia	15,410,425	244,479	15,654,905
28	Hawaii	4,788,350		4,788,350
17	Illinois	14,163,901	180,162	14,344,063
21	Indiana	10,309,166		10,309,166
40	Iowa	1,771,228	1,771,228
30	Kansas	4,031,256		4,031,256
26	Kentucky	4,292,588	733,438	5,026,026
37	Louisiana	2,138,467	244,479	2,382,946
46	Maine	231,787	334,604	566,390
6	Maryland	48,768,488	244,479	49,012,967
2	Massachusetts	125,965,736	2,644,949	128,610,686
14	Michigan	18,374,697		18,374,697
12	Minnesota	23,219,917	688,959	23,908,876
42	Mississippi	924,819		924,819
23	Missouri	7,721,475	244,479	7,965,955
39	Montana	1,296,971	488,959	1,785,930
36	Nebraska	2,173,730	244,479	2,418,209
32	Nevada	3,103,284		3,103,284
34	New Hampshire	2,643,949	2,643,949
4	New Jersey	51,956,150	488,958	52,445,108
29	New Mexico	4,725,876	4,725,876
7	New York	48,014,955	455,938	48,470,894
8	North Carolina	36,035,770	36,035,770
44	North Dakota	733,438		733,438
15	Ohio	15,126,847	783,563	15,910,410
33	Oklahoma	2,985,539		2,985,539
25	Oregon	5,447,317	5,447,317
5	Pennsylvania	48,105,101	1,222,396	49,327,497
27	Rhode Island	4,558,629	244,012	4,802,641
35	South Carolina	2,588,277		2,588,277
48	South Dakota	244,479	244,479
24	Tennessee	6,731,451	244,479	6,975,931
9	Texas	34,134,916	1,189,663	35,324,579
20	Utah	12,684,518	53,726	12,738,244
49	Vermont	244,479	244,479
3	Virginia	107,226,333	366,018	107,592,350
10	Washington	34,102,339	34,102,339
47	West Virginia	488,959		488,959
19	Wisconsin	13,054,120	133,131	13,187,251
Totals		1,074,061,820	17,406,469	1,091,468,289