BIO announces support for COMPETE Act

The Biotechnology Industry Organization (BIO) said on Thursday that it supports the Competitiveness and Opportunity by Modernizing and Permanently Extending the Tax Credit for Experimentation (COMPETE) Act.

Uncertainty over whether the tax credit would be extended makes planning difficult for companies preparing development programs.

"The R&D tax credit is an important incentive that encourages private investment in medical, agricultural, and industrial biotechnology research," BIO President and CEO Jim Greenwood said. "Such research not only produces groundbreaking new discoveries, but also creates millions of well-paying American jobs."

The legislation would also allow smaller, pre-revenue companies to engage in research by passing the tax losses and credits generated by their work to their investors.

"This provision would level the playing field for smaller companies engaged in groundbreaking research, incentivizing innovation by companies regardless of their size," Greenwood said.

The COMPETE Act was introduced into the Senate by Sen. Tom Carper (D-Del.).

"Senator Carper has taken an important step to help drive the next generation of scientific advancement," Greenwood said. "We support this Act because it would encourage needed investment, support medical research, and stimulate the U.S. economy."

BIO is the world's largest organization representing biotechnology companies and other related organizations.