The program, opened for applications last June, provides tax credits and grants to small firms that show significant potential to produce new and cost-saving therapies, support good jobs, and increase U.S. competitiveness.

Under the program, firms can opt to receive a grant instead of a tax credit, so start-ups that are not yet profitable can benefit. Investments made in the 2009 and 2010 tax years qualify. The program is limited to taxpayers with 250 or fewer employees.

According to the U.S. Treasury, the program is targeted to projects that show significant potential to produce new therapies, address unmet medical needs, reduce the long-term growth of health care costs, and advance the goal of curing cancer within the next 30 years.

Allocations also take into consideration which projects show the greatest potential to create and sustain high-quality, high-paying jobs in the United States and to advance competitiveness in the fields of life, biological, and medical sciences.

In announcing the program last June, the U.S. Treasury noted that the U.S. biotechnology industry employs 1.3 million workers and is a key growth engine for the national economy.

The program was included in the Health Care Reform Bill to foster medical, life science, and biological innovation in the U.S. The program enables the U.S. Treasury to allocate a maximum of $1 billion in tax credits or grants to eligible companies. Via the IRS, Treasury, with guidance from Health & Human Services, accepts, reviews, and certifies applications.