Build Back Better Update: BioNJ Encourages Legislators to Maintain Small Business Incentives
Congress continues deliberations on a variety of policy priorities, including the bipartisan infrastructure package and the President’s Build Back Better proposal. While Congress has on a bipartisan basis cleared short-term “must pass” items -- such as a continuing resolution keeping the federal government open as well as a debt ceiling extension -- the size, scope and particulars of the Build Back Better package remain unclear.
In addition to our continued opposition to including innovation-stifling reference pricing provisions in the package, BioNJ President and CEO Debbie Hart recently wrote the New Jersey delegation to express concerns with changes included in the Build Back Better language reported by the House Committee on Ways and Means. In particular, the House proposal includes significant changes to Section 1202 related capital gains taxes for Qualified Small Business Stock and greatly reduces the Orphan Drug Tax Credit. Both incentives have worked as intended and allowed small New Jersey companies to attract the investments necessary to research and develop tomorrow’s treatments and cures for unmet medical needs. NORD and other Patient advocacy organizations have expressed concerns with the Orphan Drug Tax Credit changes as well.
“Small and emerging biopharmaceutical companies are the backbone of New Jersey’s innovation ecosystem,” said Hart in her letter to the delegation. “And the proposed Build Back Better Act changes to both QSBS and ODTC would hamper our innovation ecosystem’s ability to continue developing treatments for rare and other unmet medical needs. BioNJ encourages you to oppose the inclusion of these provisions in the final reconciliation proposal.”
Click here for BioNJ’s letter on these important topics.
