Section 67M: Tax credit to medical, biotechnology or

67M. Tax credit to medical, biotechnology or pharmaceutical companies (1) Subject to this section, where a manufacturing company engaged in medical, biotechnology or pharmaceutical sector has incurred in an income year capital expenditure for the acquisition of patents, it shall be allowed a tax credit by way of deduction from the income tax otherwise payable by it of an amount equal to 100 per cent of the expenditure so incurred. (2) Subject to subsection (3), where the deduction under subsection (1) in respect of an income year exceeds the amount of income tax otherwise payable for that income year, the excess may be carried forward to the following income year. (3) No deduction under subsection (2) in respect of an expenditure shall be carried forward beyond a period of 5 consecutive income years starting from the income year in which the expenditure was made. (4) Where a tax credit under subsection (1) has for any income year been allowed and within 5 years following that income year – (a) the company ceases to be engaged wholly or mainly in the qualifying activity; or 342 Acts 2021 (b) the company sells or otherwise transfers the patent, an amount equal to the tax credit or the proportionate part of the tax credit allowed under this section shall be included in the income tax payable by the company in the income year in which the cessation, sale or transfer takes place. (5) The tax credit allowed under this section shall be in addition to the allowances to which the company is entitled under section 63. (6) No tax credit shall be allowed under this section to a company where a deduction under section 67K has been claimed.