2025 fourth_quarter Filing

Previously, Section 174 of the US Tax code allowed businesses to deduct research and experimentation expenses in the same taxable year in which they occurred. Currently, businesses must amortize such deductions over five years for domestic expenditures or over 15 years for foreign expenditures. Life Sciences Pennsylvania supports the American Innovation and R&D Competitiveness Act which will fix this issue that adversely affects adversely affects many of our pre-revenue and early stage member companies. In a bipartisan manner, the majority of the Pennsylvania delegation has previously voted in favor of the repeal of Section 174 so that smaller companies can resume investing maximal resources in critical R&D.

Pennsylvania is a global leader in researching and developing new therapies, devices and diagnostics that help patients live longer, healthier lives. This innovation is due in part to the policy and regulatory ecosystem we enjoy in the United States.The Rare Pediatric Disease Priority Review Voucher Program (PPRV) incentivizes the development of novel therapies to treat rare pediatric diseases. This program was not reauthorized by the end of 2024 and has therefore expired. The reauthorization of this vital program would be extended to September 30, 2029. The full US House of Representatives has not yet voted on this legislation. The Senate version of Give Kids a Chance Act of 2025 (S.932) was introduced in March and is awaiting any movement from the Senate HELP Committee.