Latest Legislative News

ALS and 90 Other Patient Organizations Oppose Repeal of the Orphan Drug Tax Credit

November 20, 2017

The House of Representatives voted to repeal the Orphan Drug Tax Credit (ODTC) as part of the Tax Reform and Jobs Act (H.R.1). The ALS and 90 other organizations, representing millions of individuals with rare diseases, are disappointed and dismayed by this harmful repeal.

The Orphan Drug Tax Credit has proven to be one of the most important incentives for developing innovative therapies for rare diseases or conditions. Without the Orphan Drug Tax Credit, 33 percent fewer therapies could be developed for our patients going forward.

Now that the House has voted to repeal the ODTC, it is more important than ever for the Senate to protect the 30 million Americans with a rare disease. Unlike the House bill, the Senate Finance Committee proposal does not repeal the Orphan Drug Tax Credit entirely. However, we remain concerned that it cuts the credit’s value nearly in half by lowering its value from 50 percent of qualified clinical testing expenses to 27.5 percent.

See the joint statement on the proposed repeal of the ODTC here.

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