Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
On March 23, 2010, the President signed the Patient Protection and Affordable Care Act (Act) (Pub. L. 111-148).
Section 9023(a) of the Act adds section 48D to the Internal Revenue Code. Section 48D provides a 50-percent
nonrefundable investment tax credit, and corresponding grant in lieu of a tax credit, for qualified investments in
qualifying therapeutic discovery projects. The credit and grant are designed to encourage investments in new
therapies relating to diseases.

2. USE OF DATA
Qualifying Therapeutic Discovery Project Credit (QTDP), Notice 2010-45, provides the procedures under which an
eligible taxpayer may apply for certification from the Internal Revenue Service, in consultation with the Department of
Health and Human Services (HHS), of a qualified investment with respect to a qualifying therapeutic discovery project
as eligible for a credit or grant under the qualifying therapeutic discovery project program established by section 9023
(a) of the Patient Protection and Affordable Care Act of 2010.
Use Form 8942 to apply, under the QTDP program, for; certification of qualified investments eligible for a QTDP credit
and a grant in lieu of the QTDP credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
The HHS portion of the application will utilized a web-based tool (fillable form). It has not been determined whether the
IRS portion (Form 8942) of the application will utilize electronic filing.

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
We have attempted to minimize the burden on small businesses or other small entities by creating one application
process.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable.

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
The statute requires that we work in consultation with HHS on the establishment of the program. We have also met
with outside stakeholders to discuss the form of the notice and the required procedural elements of the notice. Notice
2010-45 (2010-23 I.R.B. 734), was published on June 7, 2010.
Periodic meetings are held between IRS personnel and representatives of various professional groups to discuss tax
law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding the
collection requirements under Notice 2010-45 and Form 8942.
In response to the Federal Register notice (75 FR 51532), dated August 20, 2010, we received one comment letter
during the comment period regarding this notice and form. We have forwarded the comment letter to the originating
office of the form for consideration in the next revision cycle (of the form).

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
We are mandatded by the statute to provide either a credit or a grant to eligible taxpayers.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Number of
Responses
NOT-113712-10
Form 8942

1
1200

Time for
Recordkeepng
---8.61 hrs.

Time for
Response

Total
Hours

1
3.51 hrs.

1
14,544

Total Burden
14,545
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice, dated August 20, 2010, requested public comments on estimates
of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and
costs of operation, maintenance, and purchase of services to provide information. However, we did not receive any
responses from taxpayers on this subject. As a result, estimates of these cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
After consultation with various functions within the Service, we have determined that the cost of developing,
printing, processing, distribution and overhead for the form is $50,000.

15. REASONS FOR CHANGE IN BURDEN
There were no changes made to the document that resulted in any change to the burden previously reported to OMB.
We are making this submission to renew the OMB approval.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not applicable.
Note: The following paragraph applies to all of the collections of information in this submission:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information
unless the collection of information displays a valid OMB control number. Books or records relating to a collection of
information must be retained as long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

19. REASON FOR EMERGENCY SUBMISSION

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service