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It's full of announcements, but seems to be missing any calls to action. Ok. Here is the call to action: hire a lobbyist or ex-Congressman who will get yo
by temphn 15y ago
It's full of announcements, but seems to be missing any
calls to action.
Ok. Here is the call to action: hire a lobbyist or ex-Congressman who will get you in front of Startup America. Preferably a large bundler like George Kaiser. They will get you sweetheart loans and endorsements from the President and
Vice President.
We've seen this dozens of times before when "free money" is available. Scarcity requires an allocation mechanism. In the case of the very similar Qualifying Therapeutic Discovery Tax Credit (QTDTC) from last year, those who lobbied were those who got the bling.
http://www.bizjournals.com/sanfrancisco/blog/2010/10/winners_losers_in_race_to_biotech_tax_credits.html
Clearly somebody — probably a few thousand somebodies —
are going to lose out.
...
The takeaway for those biotech companies that miss out on
the tax credit, according to Eisenberg: Tell your member
of Congress to extend and expand the program.
And as with the QTDTC there will be a catch. Failure is criminalized. The failure of Solyndra prompted an FBI raid. What did the executives know and when did they know it? All government "grants" are like this. For example, to get the biotech "Qualifying Therapeutic Discovery Tax Credit" from last year, you had to essentially submit to an IRS audit.
http://www.irs.gov/newsroom/article/0,,id=224505,00.html
Q5. What type of documentation and records related to the
application should applicants maintain in order to satisfy
IRS requirements in the event of a future audit of
“qualified investment” claims?
A. Documentation and recordation should include
information sufficient to verify and explain costs treated
as qualified investments, e.g., detailed work papers and
invoices.
Translation: embarrass us and we will retroactively find your definition of "qualified investment" to be at variance with that of the IRS. Bottom line, it is unlikely this program will be substantively different from those preceding it.