Paradigm Partners Obtains $45.3 MM in Awards for Qualifying Therapeutic Discovery Project Clients

Nov. 12, 2010 - PRLog -- The Qualifying Therapeutic Discovery Project Credit (“QTDP Credit”) was created by Congress as part of the Patient Protection and Affordable Care Act passed on March 23, 2010.

On October 29, 2010, the awards for 2009 and 2010 were announced by the IRS for the QTDP Credit.

According to the National Institutes of Health, there were 5,600 applications received by the July 21 deadline. By October 29, each application had to be reviewed and decided on by the NIH and Internal Revenue Service per a congressional mandate.

All projects that met the criteria outlined by Congress were awarded money, and ultimately 4,606 projects from 2,923 companies were deemed eligible.

The maximum award allowed by law was $5 million but since so many more companies applied than anticipated, the maximum actually awarded was limited to $244,479.24 per project.

Paradigm Partners is proud and pleased to announce that 149 Paradigm clients received awards totaling $45.3 million dollars which represents 4.53% of the total $1 billion awarded.

Karim Solanji, J.D. and Director for Paradigm Partners said, “We at Paradigm Partners recognized an opportunity to leverage our expertise in the Research & Development Tax Credit (R&D Tax Credit) field to help Biotechnology companies interested in taking advantage of the QTDP Credit. We also recognized that since there was a cap of $1 billion dollars and a very short timeframe to apply for the QTDP Credit that an all out effort would be required.”

We employed our marketing and sales staff to first contact all potential prospects via email, webinars, telemarketing, existing partnerships and new partnerships. The next step was to reach an agreement with initially qualified companies for Paradigm to perform the necessary work to submit a valid application for funding.

Then we used our production staff of engineers and attorneys to further cull the client list as more information was learned about the specifics of the QTDP Credit and after conversations with client representatives. Our production staff then completed the applications after further discussions with our clients and many discussions with the IRS to make sure that our applications had the best chance for funding approval for our clients.

Even though we signed over 300 clients, after reviewing each client carefully, we ended up kicking out around 130 of them because we felt they had a very low chance of success.

The result was an astounding 252 applications submitted to the IRS for funding and Paradigm’s application approvals exceeded the national average. The resulting awards of $45.3 million showed the entire effort was very successful and worthwhile.

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Paradigm Partners is a national tax consulting firm specializing in niche tax services: the R&D Tax Credit, Sales and Use Tax, the IC-DISC (US Exporters' Tax Incentive), Hiring Tax Incentives, Energy Efficiency (Section 179D) and Cost Segregation Studies.