Two bills recently advanced by the state Senate Institutional Sustainability and Innovation Committee would strengthen Pennsylvania’s position in research, development and life sciences innovation.
Senate Bill 792 would double the annual statewide cap for the Research and Development Tax Credit Program to $120 million and increase the small-business allocation from $12 million to $24 million. Any unused credits would be permitted to be reallocated between small-business and large-business pools. In addition, the small-business asset threshold would be increased to $10 million, the standard credit rate to 14 percent and the small-business credit rate to 25 percent.
Companies beginning research and development activities would receive a 6 percent credit for qualifying expenses if they had no research and development activity in Pennsylvania during the previous three years.
Senate Bill 1206 would update pharmaceutical and medical device manufacturers’ licensing requirements. Companies would be permitted to apply for state licensure while awaiting approval from the U.S. Food and Drug Administration (FDA).
The bill also clarifies that the Department of Health may not require FDA approval as a condition of licensure and expands the definition of a virtual manufacturer to include companies that have already received FDA approval.
The bills now move to the full Senate for consideration.