RALEIGH, N.C. (December 17, 2010) Hughes Pittman & Gupton, LLP, the largest CPA firm headquartered and staffed in the Research Triangle Park region of North Carolina, announces today it has assisted 24 North Carolina bio, pharma and life science companies in securing more than $6.3 million in Qualifying Therapeutic Discovery Project grants. The firm assisted four companies in other states securing an additional $2.2 million in grant monies. In total, North Carolina companies received more that $36 million from the Patient Protection and Affordable Care Act program. A list of all North Carolina grant recipients is available at http://www.irs.gov/businesses/small/article/0,,id=229005,00.html.
In March, President Obama signed the Patient Protection and Affordable Care Act into law providing $1 billion in tax credits and grants for qualified therapeutic discovery projects in 2009 and/or 2010, and created a new Internal Revenue Code Section 48D. To apply, qualified investment applications needed to be submitted to the IRS and certified by the Department of Health and Human Services. This included demonstrating the potential to create and sustain high quality, high paying jobs in the U.S. and the advancement of American competitiveness in the fields of life, biological and medical sciences. Along with explanation of the science, detailed financial and economic impact information needed to be included in the application. The final guidelines were made public in May and all applications needed to be complete by July 21, 2010.
“With a small window of time to apply for these credits and grants, we wanted to inform North Carolina businesses about the opportunity and ensure that they completed the application process on time,” says Lance Hardin, senior tax manager for HPG. “We are thrilled with the results.”
To assist North Carolina companies in understanding the opportunity and application requirements, HPG senior tax accountants and advisers hosted an informational meeting attended by more than 40 industry executives in May, before the application process was finalized by DHHS. From this meeting, the firm worked with a total of 28 companies to submit 42 separate applications for funding. HPG assisted 12 clients in preparing 19 applications. The firm also provided support to 16 companies that submitted a total of 23 projects for consideration by answering questions, reviewing applications and providing the necessary economic impact statistics in partnership with the North Carolina Biotechnology Center. Of the 42 projects, 39 received funding, 32 receiving the maximum distribution of $244,479.
“The team at HPG did a great job partnering with us to successfully win the maximum award for all three of our QTDP submissions,” says Rob Middlebrook, CFO/COO of Envoy Therapeutics. “They helped us to repackage our responses in a way that far more effectively addressed all of the criteria requested by the reviewers.”
In total, 4,606 applications from 2,923 biotech and medical research companies across the U.S. were awarded funding. A complete list of recipients may be viewed here.
HPG has a long history of supporting companies in the bio, pharma and life science industries through its Knowledge Based Industries practice area. The firm and its members are active with the North Carolina Biotechnology Center, NCBIO, SEBIO and CED.
HPG is the largest CPA firm headquartered and staffed in the Research Triangle Park region of North Carolina, as ranked by the Triangle Business Journal. More than just an accounting firm, HPG assists clients in looking beyond the bottom line by being the right people, right value and right firm to achieve each client’s definition of success. HPG is a member of CPAmerica International and affiliated with the Horwath alliances of firms, with offices worldwide. The firm leverages this to provide national and global accounting resources to its clients. HPG offers a wide array of business accounting, auditing, corporate tax and management advisory services. Specialties include serving owner-managed, investor-backed technology and life science organizations, healthcare services, real estate development, manufacturing and distribution businesses, as well as providing ERISA audits, family wealthcare services and Sarbanes-Oxley internal audit services.
HPG has remained committed to advancing a thriving Triangle community since its founding in 1983. In recognition, the firm is the recipient of two Pinnacle Business Awards by the Greater Raleigh Chamber of Commerce; the 2009 Large Entrepreneurial Business Award and the 2010 Integrity in Business Award. Several HPG partners are also the recipients of excellence awards, including the CED Outstanding Service and Entrepreneurial awards, Business Leader Magazine’s Impact Financial Leader and Dealmaker recognitions, and the Triangle Business Journal’s 40 Under 40 and Women in Business awards. Visit www.hpg.com of follow HPG on Twitter at http://twitter.com/HPGcpas.