“The credit has become a lifeline for the State’s biotech companies, helping them to expand and add jobs and bring to the market many innovative and life-saving discoveries.” -- Governor Martin O’Malley
Baltimore, MD (PRWEB) July 07, 2011
Investors seeking a portion of the $8 million available in FY 2012 for the State’s popular Biotechnology Investment Incentive Tax Credit submitted more than 180 applications online within three minutes July 1, Maryland Department of Business and Economic Development (DBED) Secretary Christian S. Johansson announced today. The online system was launched last year to make the application process easier and 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. The applications were taken on a first-come, first-served basis and investors will learn within 30 days if their prospective investment may be eligible for the credit. The tax credit program, which was first funded with $6 million in FY 2007, encourages investors to provide seed and early-stage funding to qualified, privately held Maryland biotechnology companies.
“Together, with the business community and industry stakeholders, we fought to maintain Maryland’s highly successful biotech tax credit at $8 million for FY 2012 and the program continues to see tremendous interest by investors,” said Governor Martin O’Malley. “The credit has become a lifeline for the State’s biotech companies, helping them to expand and add jobs and bring to the market many innovative and life-saving discoveries.”
“Maryland’s biotechnology tax credit is the most generous tax credit of its kind in the nation, reducing an investor’s risk by 50 percent,” said Dr. Judith Britz, Executive Director of the Maryland Biotechnology Center. “Since the process is driven by the company’s ability to attract investment, the market is dictating the winners. As word spreads, the demand for this tax credit continues to grow.”
In 2010, 19 Maryland biotechnology companies received investments from the program, which is a key part of the BioMaryland 2020 plan, the 10-year, $1.3 billion strategy for moving the State’s life sciences industry forward and investing in programs and infrastructure to position Maryland as a global powerhouse. Since it was first funded, the program has issued $32 million in tax credits, assisting more than 50 Maryland biotechnology companies and leveraging $64 million in private investment. For more on the program, visit http://www.MarylandBiocenter.org
Companies receiving investments from the program in 2010 and so far in 2011 include 20/20 Gene Systems (Montgomery County); A&G Pharmaceutical (Howard County); Akonni Biosystems (Frederick County); BioAssay Works (Frederick County); BioMarker Strategies (Baltimore City); Blue Torch Medical Technologies (Montgomery County); Clarassance (Montgomery County); Creatv MicroTech (Montgomery County); Corridor Pharmaceuticals (Baltimore County); CosmosID Inc. (Prince George’s County); FASgen (Baltimore City); Fyodor (Baltimore City); Gliknik (Baltimore City); InfraTrac (Montgomery County); Intelligent Substrates (Baltimore City); Noble Life Sciences (Montgomery County); Noxilizer (Montgomery County); Otraces Inc. (Montgomery County); Plant Sensory Systems (Baltimore County); Telcare (Montgomery County); Xcision Medical Systems (Howard County); and Zymetis (Prince George’s County)
Dr. Sharon Flank, CEO of InfraTrac, said the tax credit program has helped her market her company’s unique technology to analyze counterfeit drugs.
“We could have based our company in any jurisdiction, but we chose Maryland because of the tremendous support for young biotech companies,” said Dr. Flank. “As part of the State’s biotech community, we receive mentoring, training, showcases at conferences and access to funding through other programs of the Maryland Biotechnology Center. InfraTrac is proud to support the growth of biotech in Maryland, one job at a time.”
John Dwyer, chairman of Telcare Inc., said his company was able to raise more than $1 million of early stage equity capital last year through the biotech tax credit.
“The tax credit played a crucial role in motivating a number of individual investors to make their investment in an efficient and expeditious manner,” Dwyer said. “Because of this critical investment, Telcare developed the first wirelessly enabled blood glucose meter, attracted a Fortune 100 corporate investor and created a dozen new jobs.”
To qualify, companies are required to: be less than 15 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.
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, visit http://www.ChooseMaryland.org.
ABOUT THE MARYLAND BIOTECHNOLOGY CENTER
The Maryland Biotechnology Center (MBC), part of the Maryland Department of Business and Economic Development, is a newly created organization by Governor Martin O’Malley and the Maryland Life Sciences Advisory Board. The MBC is a portal to resources and coordinated programs of entrepreneur and biotechnology infrastructure development, workforce training, connection to federal facilities, and marketing Maryland’s bioscience community. For more information, visit http://www.MarylandBiocenter.org.