BIOTECH TAX CREDIT GOES ONLINE,
DRAWS MORE THAN 100 APPLICATIONS
Investors seeking a portion of the $8 million available in FY 2011 for the State’s popular Biotechnology Investment Incentive Tax Credit submitted applications online this morning, using a new system that was developed to make the process of applying for the credits more efficient. At 9 a.m., when investors could “line up” electronically, program administrators with the Maryland Department of Business and Economic Development (DBED) reported the new system worked smoothly and more than 100 applications were filed on a first-come, first-served basis. Investors were notified immediately that their application was successfully submitted and will learn within 30 days if their prospective investment may be eligible for the credit.
“The Biotechnology Tax Credit Program has provided tremendous support and financial stability to many emerging biotechnology companies with lifesaving missions, and it was critical that we develop a more efficient way for investors to submit applications,” said DBED Secretary Christian S. Johansson. “This new process allows us to apply the best practices of the private sector to a State program and makes it easier for businesses to do business in Maryland.”
Earlier this year, DBED collaborated with Maryland’s biotechnology industry to develop the online system, which eliminates the need for investors and biotechnology firms to line up in person in advance, as they have done in past years, to claim a portion of the credit’s available funds. Investors planning to apply for the credit were required to submit supporting documentation and investor forms in June to the Maryland Biotechnology Center’s offices at the World Trade Center in Baltimore and were given a user name and reference number for their electronic submission.
“The $8 million in tax credits translates into at least $16 million in investments for qualifying companies. These investments allow companies to create new jobs and develop products ranging from advanced diagnostics to new drug therapies and devices as well as biofuels,” said Dr. Judith Britz, Executive Director of the Maryland Biotechnology Center. “I want to encourage investors to continue to apply to the program because, after the initial application process, some initial tax credits awarded in the program will become available to later investors.”
The Maryland Biotechnology Investment Incentive Tax Credit program provides tax credits to promote private investment in qualified Maryland biotechnology companies and is a critical element of Governor O’Malley’s Bio2020 initiative. Since it was first funded in FY 2007, the program has issued $30 million in tax credits, assisting more than 40 Maryland biotechnology companies and leveraging more than $60 million in private investment. For more on the program, visit www.MarylandBiocenter.org
To qualify, companies are required to: be less than 12 years old; have their headquarters 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.