Senate tax plan diverges from House on key biopharma issues

The first draft of the Senate tax reform bill varies widely from the House version on several key issues for the biopharma industry, including its treatment of the Orphan Drug tax credit, carried interest and payments to related foreign subsidiaries.

The Senate bill seeks to reduce the Orphan Drug tax credit by capping eligible expenses, which is in contrast to a proposal in the House bill that seeks to completely eliminate the credit...