The Clinton administration's latest plan to provide tax breaksfor investors in small businesses would bypass most of thebiotechnology industry.

The plan, described in a 71-page booklet released last week, bythe Treasury Department, would exclude from the incentivecompanies that have raised more than $25 million from debtand equity, rather than using the $100 million limit providedfor in legislation proposed by Sen. Dale Bumpers, D-Ark. Also,non-taxable capital gains would be capped at 10 times theoriginal price of the stock or $1 million, whichever is less.

Carl Feldbaum, president of the Biotechnology IndustryOrganization (BIO), said industry representatives will get towork immediately to address this situation.

"We're going back to the well on that one," Feldbaum toldBioWorld. "We are going to make additional contacts with theadministration to explain how that will affect our industry.

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