Bill Overview
Title: To amend the Internal Revenue Code of 1986 to make a portion of research credit refundable for certain small businesses engaging in specified medical research.
Description: This bill allows for the refundability of a portion of the tax credit for increasing research activities for small businesses (gross receipts not exceeding $1 million) engaged in specified medical research. Under the Public Health Service Act, specified medical research means research with respect to qualified countermeasures (i.e., a drug, biological product, or device for preventing harm from any biological agent or from a condition that may result in adverse health consequences or death).
Sponsors: Rep. Buchanan, Vern [R-FL-16]
Target Audience
Population: Small businesses engaged in specified medical research
Estimated Size: 3000
- Small businesses (defined as having gross receipts not exceeding $1 million) that engage in specified medical research will directly benefit from this bill.
- Specified medical research must be with respect to qualified countermeasures, indicating a niche and specific field within medical research.
- This bill does not apply to large corporations or companies in fields other than specified medical research.
- While the refundability of the research credit applies to small businesses globally, those which are based in places where the biological threats are more prevalent may receive more practical benefit.
- The indirect impact could extend to employees within those small businesses, particularly those in research and development roles.
Reasoning
- The policy is specifically aimed at US small businesses involved in specified medical research related to qualified countermeasures. Therefore, the primary impact is on such businesses and their employees.
- Given the restriction to small businesses with gross receipts not exceeding $1 million, we focus on individuals representing those businesses or related stakeholders such as employees and local community members.
- Not all individuals in the medical field or small businesses will be affected, as the policy is narrowly targeted at specified medical research. We also consider those outside the direct scope for perspectives on indirect effects.
Simulated Interviews
CEO of a small biotech startup (Raleigh, NC)
Age: 53 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This policy is crucial for small businesses like ours that focus on high-risk, high-reward research.
- Meeting immediate funding needs can push forward critical breakthroughs and attract further investments.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 6 | 3 |
Postdoctoral researcher (Boston, MA)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Access to funding would mean job security and the continuation of my research.
- This bill is a positive step for scientific progress and my professional growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Owner of a small medical device company (Austin, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- The chance to obtain a refundable credit could significantly ease our financial pressures.
- We often struggle to compete against larger corporations for funding.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 3 |
| Year 10 | 6 | 3 |
| Year 20 | 5 | 2 |
Lab technician (San Diego, CA)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- It's nice to know we have a shot at stability with this new funding opportunity.
- I hope this leads to more job security and potential raises.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Retired healthcare worker (Cleveland, OH)
Age: 61 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 3/20
Statement of Opinion:
- This policy might keep innovative research companies afloat, benefiting everyone.
- As a consultant, I see this policy helping achieve long-term research goals.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Public health policy expert (Sacramento, CA)
Age: 52 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 7/20
Statement of Opinion:
- This policy is a progressive move towards rewarding innovation in critical research areas.
- However, more initiatives like these are necessary to adequately boost industry growth.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Research Scientist (Seattle, WA)
Age: 34 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 4.0 years
Commonness: 4/20
Statement of Opinion:
- This policy makes our funding less uncertain, which is beneficial for my career.
- Better financial stability is great for both personal and professional reasons.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Pharmaceutical sales representative (Miami, FL)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 6/20
Statement of Opinion:
- While the policy doesn't directly affect my role, healthier partnerships may result from thriving smaller companies.
- I'll likely benefit indirectly from a strengthened market.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Entrepreneur (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy gives me more confidence to take the entrepreneurial leap.
- Access to refundable credits would make it more feasible to start my venture.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 3 |
Community Advocate (Chicago, IL)
Age: 42 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Funding dedicated to small businesses could improve community health outcomes.
- I support initiatives that strengthen our response to biological threats.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $90000000 (Low: $60000000, High: $120000000)
Year 2: $95000000 (Low: $65000000, High: $125000000)
Year 3: $100000000 (Low: $70000000, High: $130000000)
Year 5: $110000000 (Low: $80000000, High: $140000000)
Year 10: $130000000 (Low: $110000000, High: $150000000)
Year 100: $300000000 (Low: $200000000, High: $400000000)
Key Considerations
- Only a small segment of small businesses engage in specified medical research, limiting the broad fiscal impact.
- The policy aims to incentivize research in critical health defense measures, potentially yielding significant long-term societal benefits.
- Administrative monitoring to ensure correct targeting of the credits will be crucial to prevent misuse.