R&D Tax Credit Leads VABIO Agenda
The 2011 Session of the Virginia General Assembly was gaveled to order on Wednesday, January 12. Over the course of the session, which lasts only 45 days, the Virginia Biotechnology Association will be focused on passing two extremely important bills for the bioscience and medical device industries.
The top priority is the passage of a Refundable Research and Development Tax Credit. The proposed credit would amount to 15% of the qualified research and development expenses incurred by advanced technology companies in the Commonwealth. The credit would increase to 20% if such research were conducted in partnership with a public college or university in Virginia. In addition, the amount of the credit that exceeds the company’s tax liability would be returned in cash to that business. According to a recent report by the Battelle Memorial Institute and the Biotechnology Industry Organization (BIO), 38 states offer an R&D tax credit as part of their job creation strategies. An R&D tax credit was recommended by Governor Bob McDonnell’s Commission on Economic Development and Job Creation last fall. Click here for the bill: http://leg1.state.va.us/cgi-bin/legp504.exe?111+sum+HB1447
In addition, the Virginia Biotechnology Association is advocating for the passage of the “Virginia Research and Technology Innovation Program” (VRTIP). This $25 million initiative is focused on the following objectives: 1) Helping new and emerging technology companies gain access to proof of concept and bridge funding; 2) Assisting established companies with commercialization of promising new products; 3) Enable Virginia’s research universities to assist businesses with technology related R&D; and 4) Develop a more robust “Eminent Scholars Program” to recruit the best researchers to the Commonwealth. Click here for the bill: http://leg1.state.va.us/cgi-bin/legp504.exe?111+sum+HB2324
2011 Virginia General Assembly Information: Each year, the Virginia Biotechnology Association tracks dozens of important bills and resolutions introduced in the state legislature. Click here to view links to the top legislation we are tracking for our members.
“We will be asking for help from our members when these important bills come up for a vote,” said Mark Herzog, the executive director of VABIO. “Our members helped make the difference when we refocused the Angel Investor Tax Credit on life sciences and other advanced technologies in 2009 as well as the abolition of the capital gains tax on technology investments last year.”
To help the association with its legislative agenda, please contact VABIO at 804-643-6360.
