Tax reform bill cuts Orphan tax credit

The Tax Cuts and Jobs Act (H.R. 1) bill released Thursday by House Republicans seeks to repeal the Orphan Drug Tax Credit (ODTC). The provision gives drug developers a credit of 50% of clinical drug testing costs for drugs that have been granted Orphan designation.

According to an analysis conducted by the U.S. Department of the Treasury on Oct. 17, total tax expenditures stemming from the tax credit for orphan drug research are expected to climb to $15.3 billion in 2027 from $2.3 billion in 2017...