Good Day BIO: CA reinstates two key tax provisions

Good news for biotech companies in California, plus how you can participate in a new BBC StoryWorks series highlighting biotech innovations. And with the Super Bowl on Sunday, it’s a good time to talk about CTE. (687 words, 3 minutes, 26 seconds)

California reinstates key tax provisions for biotech companies

California Gov. Gavin Newsom signed legislation yesterday that would reinstate two important tax provisions for biotech companies large and small—a win for biotech innovation and future cures. 

The details: Senate Bill 113 provides $1.6 billion in relief for small businesses. Specifically, the bill reinstates the Research and Development Tax Credit and the Net Operating Loss (NOL) Tax Deduction, which were frozen in 2020. 

Why it matters: The R&D tax credit and NOL deduction help many biotech companies with research operations in California defray R&D costs and provide an incentive to invest in smaller start-up companies that are not yet profitable.   

And that’s not all: Senate Bill 114, also signed into law yesterday, extends COVID-19 paid sick leave through September 30, 2022. 

What they’re saying: “We’re ensuring that workers have the time they need to take care of themselves and their loved ones, expanding our nation-leading small business relief grant program, and supporting the businesses whose innovation and entrepreneurial spirit help make California the 5th largest economy in the world,” said Gov. Newsom. 

BIO’s take: BIO is pleased about the reinstatement of these tax programs, which will keep California at the forefront of biotechnology innovation.  

In other news, speaking of biotech innovation in California…
IGM Biosciences, one of BIO’s newer members based in Mountain View, CA, announced yesterday their novel COVID-19 antibody has advanced into clinical trials. The antibody “exhibits neutralization” of all variants of concern, including Omicron, and could be used in the treatment and prevention of the virus.

BBC StoryWorks calls for biotech stories

ICYMI: In June 2021, we launched Nature’s Building Blocks, a BBC.com series showcasing the diversity of voices and the impact of industrial, agricultural, and health biotechnology—watch.

The new campaign will cover three core themes:

1. NATURE POSITIVE: What are the most exciting and innovative biotechnology practices that could combat climate change?
2. BUILDING HEALTH: How can we demystify the next generation of therapies and ensure recent breakthroughs serve global communities?
3. STOPPING THE BLOCKS: Which actors are shaping an inclusive culture of open science and collaboration to accelerate progress?

Do you have a story to share? Visit www.bbcglobalnews.com/biotech-stories by April 11 to get started. BBC will invite a selection to discuss engaging BBC StoryWorks Commercial Productions’ creative teams to produce a piece for the series, to be launched later in 2022. 

Do you want more information? Members of the BBC team will attend next week’s BIO CEO and Investor Conference, so get in touch if you’d like to discuss potential stories. Contact Hilary Stiss, BIO’s Senior Manager of International Affairs and ICBA Program Director, at hstiss@bio.org.


More Agriculture & Environment News:

BIO Video: First Pig Heart Transplant Into a Human
The first successful transplant of a pig’s heart into a human relied on gene editing to make the pig’s organ more compatible with human anatomy—a revolution that could help resolve the shortage of organs for human transplant.

Super Bowl highlights need for CTE awareness

Whether you’re rooting for the LA Rams and Cincinnati Bengals on Sunday, we can all come together on the need to address the brain health of the athletes—and specifically, CTE. Here’s what biotech’s doing about it.

CTE, or chronic traumatic encephalopathy, is a “degenerative and progressive” brain disease that occurs as a result of repetitive head injuries, including from contact sports, explains the Patrick Risha CTE Awareness Foundation. It’s been found in people with and without concussions, as well as “little hits.”

The challenge: Currently, CTE can only be verified with autopsy—but we’re seeing more cases among high school and college athletes, showing the urgent need for awareness and research. 

Biotech’s making strides—developing technology like bio-manufactured exosomes to potentially “reset, regenerate, and coordinate communication” in an injured brain, and gene therapy. 

What we need right now:awareness of the symptoms and safe sports.

President Biden’s Thursday: Giving remarks at 12:30 PM ET on health care costs, including prescription drug costs. This afternoon, he’ll meet with Senate Judiciary Committee Democrats to discuss the Supreme Court nomination process. 

What’s Happening on Capitol Hill: A few Senate hearings to note, including Aging Committee on improving care for people with Medicare and Medicaid, HELP Committee on the health care workforce shortage, and Energy & Natural Resources Committee on clean hydrogen.