Two Pennsylvania lawmakers unveiled a measure Wednesday they say can help spur research and development in biotechnology by removing barriers to the federal tax code. Sen. Rick Santorum, a Penn Hills Republican, and Rep. Melissa Hart, a Bradford Woods Republican, said the law would enable new biotechnology companies to claim net operating losses as tax deductions. Currently, to help pay for the process of getting drugs and treatments approved, companies often have to undertake equity financing that triggers ownership changes, preventing the companies from claiming net operating losses. It takes about 10 years to develop a new drug or treatment and the cost is between $500 million and $800 million.
