$12 MILLION FOR BIOTECH TAX CREDIT IN FY 2015 DRAWS MORE THAN 100 REGISTRATIONS
“The Biotechnology Tax Credit is one of our most effective tools for helping Maryland biotech companies attract new investors and bring their innovative medical devices and diagnostics to the commercial marketplace,” said Governor Martin O’Malley. “Increasing funding for the credit is critical as we continue to nurture a healthy Innovation Economy in Maryland.”
The credit is a key part of Governor O’Malley’s BioMaryland 2020 plan, the 10-year, $1.3 billion strategy for moving the State’s life sciences industry forward, stimulating investment in targeted fast-growth businesses and encouraging creation and retention of intellectual property in Maryland. Since 2007, Governor O’Malley has doubled the funding, from $6 million to $12 million, for the popular program.
The online system for the Biotech Tax Credits was launched four years ago to make the process easier, more efficient and eliminate the need for investors and biotech firms to line up in person in advance as they had done in past years. Registrations are taken on a first-come, first-served basis and investors will learn after 30 days if their prospective investment may be eligible for the credit. Funding is distributed in the form of a refundable tax credit equal to 50% of an investment to eligible investors. Although recipient companies must be based in Maryland, investors from outside the State and around the world are encouraged. Investments from $25,000 to $500,000 per individual investor are eligible, with a company limit of $1.5 million.
Companies receiving investments from the program in calendar year 2013 include 20/20 Gene Systems (Montgomery County); Alper Biotech (Montgomery County); American Gene Technologies International (Anne Arundel County); Animalgesic Laboratories (Anne Arundel County); BeneVir Biopharm (Montgomery County); BioMarker Strategies (Montgomery County); Cerecor Inc. (Baltimore City); Clear Guide Medical (Baltimore County); Creatv MicroTech (Montgomery County); Cosmos ID Inc. (Prince George’s County); ConverGene (Montgomery County); Diagnostic Biochips (Howard County); DioGenix (Montgomery County); Fyodor (Baltimore City); Gliknik (Baltimore City); GrayBug (Baltimore City); InfraTrac Inc. (Montgomery County); InnoVital Systems (Prince George’s County); Noxilizer (Baltimore City); Otraces Inc. (Montgomery County); Pathsensors (Baltimore City); Plant Sensory Systems (Baltimore County); Plasmonix (Baltimore County); Rafagen (Montgomery County); Royer Biomedical (Frederick County); Sequella (Montgomery County); Synergy America (Montgomery County); and Xcision Medical Systems (Howard County). See the complete report here.
To qualify, companies are required to: be less than 10 years old; have their headquarters and base of operations 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.
ABOUT BIOMARYLAND CENTER
The BioMaryland Center, an office within Maryland’s Department of Business and Economic Development, connects life sciences companies, academic and federal researchers with each other and with potential capital sources, partners, clients, and other resources. Center staff provide information regarding funding and other resources, business plan feedback, access to market research, advocacy, and other industry support. The BioMaryland Center also promotes the state’s life sciences industry domestically and abroad. For more information regarding the Center and the Biotechnology Development awards program, visit www.Bio.Maryland.gov.
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. For more information, visitwww.ChooseMaryland.org
Karen Glenn Hood, Director, Media Relations and Public Affairs
Division of Marketing and Communications
Maryland Department of Business & Economic Development
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