VaBIO staff met Terry McAuliffe, one of the candidates for the Democratic nomination for Governor of Virginia, yesterday at a "meet & greet" event in Richmond. Mr. McAuliffe said that if he were to be elected, Virginia would have plenty of wet lab space for commercialization. He asked us to read his plan which is posted on his website.
Here are some quotes that relate directly to the Life Sciences...
"Reward in-state investment in research
and development: Virginia is one of a rapidly shrinking number of states not offering a research and development (R&D) tax credit. Recent enhancements of the federal R&D tax credit have made this a more attractive incentive than ever before, particularly when states closely link their offerings to the federal credit. According to the Kauffman Foundation’s 2008 State New Economy Index, Virginia
ranks below the national average in industrial R&D investment.
To improve its standing, we should consider initiatives such as New York’s Research and Development tax credit that offers businesses who invest in research and development facilities a 9 percent corporate tax credit. In June 2008, Governor Deval Patrick put into place the new Massachusetts Life Sciences law. This legislation, designed to make the state the national leader in the life sciences field, provided $500 million in capital funding for infrastructure projects related to life sciences and $250 million for the Massachusetts Life Sciences Investment Fund for loans, grants, and investments to stimulate increased research and development in the life sciences sector."
McAuliffe also discussed venture capital:
"Investing in venture capital firms with a commitment to pursue investments in Virginia: A Virginia Capital Investment
Corporation could be created to conduct a national solicitation for investment plan
proposals from qualified venture capital investment fund allocation managers,
focusing on businesses within Virginia committed to maintaining a physical presence
in Virginia. For instance, the Iowa Fund of Funds (IFOF) is a $100 million venture capital development program influenced by similar initiatives in Oklahoma and Arkansas. Monies are invested in venture capital projects agreeing to establish
a presence in Iowa and actively seek Iowa investments. A contingent tax credit is also available through the State. Cimarron Capital Partners LLC manages the fund. The first investment by an IFOF-supported venture fund in an Iowa company was made in 2007. The IFOF’s $28 million in commitments has attracted six venture funds with over $570 million in venture investing capacity to the state."
"Match federal net operating loss “carry
back” for small businesses: The American Recovery and Reinvestment Act will provide some help for small businesses, including additional funding for the federal Small Business Administration and its loan programs. The federal stimulus will also provide some new tax breaks for small businesses, notably extending a net operating loss “carry back” provision from two years to five years, a change that will provide immediate cash infusion for many small businesses. In basic terms, lengthening the “carry back” provision will enable business owners to balance out their net losses over years when the business had a net operating gain. The ability to “spread out” its tax liability will help a business to decrease the impact of recent bad
years. We should enhance the impact of the federal “carry back” provisions here in
Virginia by making parallel changes to our own tax policies."
Mr. McAuliffe spoke to about 30 lawyers and industry representatives.