Express Scripts Denied $42.9 Million Tax Credits for Software

Express Scripts Inc. isn’t entitled to $42.9 million in tax credits, because its claims adjustment software doesn’t qualify for a domestic production activities deduction, a federal judge in Missouri said Tuesday.

Judge Henry E. Autrey granted summary judgment to the US in its years-running dispute with the St. Louis-based pharmacy benefit management company. The agreements Express Scripts signs with its clients designate the software’s operation as a service, said Autrey, of the US District Court for the Eastern District of Missouri.

The software at issue helps sponsors of prescription drug plans to determine whether a drug prescribed to a member ...