Small Business success

Prepared by Nickolai Vasilieff – copyright 2011. All rights reserved No reprint or reissue of all or part of this document may be made without the express written permission of the author. Subject: Online Module Biotech R&D Tax Credit. By Nickolai Vasilieff


Congress just passed the Healthcare Reform act of 2010 and included is a provision specifically for biotechnology companies that returns 50% of qualifying R&D expenses, or, if they are in a non-tax paying situation, an equal amount as a grant. In other words, qualifying companies can spend $1 million on R&D and receive $500,000 back. One qualifier is that companies must be under 250 employees, so this applies to small to medium organizations, or possibly in some cases, subsidiaries of larger organizations.

This is an extraordinary opportunity that should not be missed by qualifying biotech companies, but they must move fast. The tax credit applies to both 2009 and 2010, but is capped at a combined $1 billion, and is on a first come first serve basis. The regulation goes into effect in the next 30 to 60 days and they hope to accept filings 30 days after that. This means companies must implement an effective documentation process immediately for both past and current R&D activity.

RIX® Technology is ready with a special Biotech Module to help companies immediately begin gathering current R&D activity data and documentation, and capture past activity. Our online service requires no new software or hardware and can be put into service quickly. Once RIX®  is implemented, scientists and engineers can begin reporting immediately. Regularly, or at any time, RIX® can provide compilation reports and when needed a final report with tax credit calculations for rapid filing.

For more information contact Nick Vasilieff at 206 619 9666,

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