| BALTIMORE, MD Tue, Jul 1, 2008 More than a dozen investors waited in line for hours this morning and some even camped-out overnight in Baltimore to apply for a portion of the State’s coveted $6 million Biotechnology Investment Tax Credit. The program, administered by the Maryland Department of Business and Economic Development, encourages investors to provide seed and early-stage funding to qualified, privately held Maryland biotechnology companies and has already leveraged more than $24 million in private investment since its inception in 2006. To build on that success, Governor O’Malley recently announced the Bio 2020 Initiative, an innovative $1.1 billion investment that includes quadrupling State funding of the highly successful Biotech Investment Tax Credit by 2013.
“This unsurpassed level of interest in Maryland’s existing biotech tax credits further supports the need for increased investment in our growing bioscience industry,” said Governor Martin O’Malley. “Our Bio 2020 Initiative for Maryland will make sound investments that create jobs and economic opportunities for Maryland’s working families and will advance the life-saving discoveries of tomorrow.”
The Maryland Biotechnology Investment Tax Credit program provides tax credits equal to 50 percent of an eligible investment, and investors make an equal match. To qualify for the credit, companies must: be less than 12 years old; be headquartered in Maryland; employ fewer than 50 people, and have a valid certification from the Department of Business and Economic Development. Investors are required to submit applications prior to making an investment. DBED reviews the applications and issues initial credit certifications within 30 calendar days.
“The Maryland Biotech Investment Tax Credit has proven its ability to attract capital to early and mid-stage Maryland biotechnology companies,” said Marty Zug, CFO of Sequella, Inc., a clinical stage biopharmaceutical company located in Rockville that focuses on commercializing improved treatment paradigms for diseases of epidemic potential. “We’ve utilized this tax credit over the past two years to raise more than $2 million, resulting in important product milestones which in turn attracted additional investors. I applaud Governor O’Malley’s forward thinking proposal to double the credit next year and believe the expansion of this successful program will further facilitate growth in Maryland’s biotech industry.”
“Interest in Maryland’s Biotech Investment Tax Credit has been overwhelming for years, testament to the continued strength of Maryland’s biotech industry,” said DBED Secretary David W. Edgerley. “Increasing the credit is a key element of Governor O’Malley’s 2020 BioVision for Maryland, which doubles the credit next year and, by 2013, will leverage almost $50 million a year for Maryland companies.”
For more information about the Maryland BioTechnology Investment Tax Credit program, send an email to taxincentives@choosemaryland.org.
ABOUT DBED:
The Maryland Department of Business and Economic Development stimulates private investment and creates jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing workforce training and financial assistance to Maryland companies. The Department promotes the State's many economic advantages and markets local products and services at home and abroad to spur economic development and international investment, trade and tourism. Because they are major economic generators, the Department also supports the Arts, film production, sports and other special events. For more information, visit www.choosemaryland.org.
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