U.S. to halve Orphan credit

The final tax reform bill that Congress will consider this week halves the Orphan Drug tax credit, preserves the R&D tax credit, and gives biopharma companies incentives to repatriate billions of dollars they have stashed outside the U.S.

House and Senate negotiators decided to cut the Orphan tax credit to 25%, the rate specified in the Senate-passed version of the tax reform. While this disappointed Orphan disease advocates who lobbied for retention of the current 50% rate, they view it as a vast improvement over the House bill, which would have eliminated the credit. ...