Investment tax credits move forward

by Catherine Dolinski
Staff Writer

Apr. 1, 2005

With less than two weeks left in the General Assembly's annual legislative session, the piles of passed and passed-over legislation are growing fast.

On Monday, a slimmed-down version of a tax credit proposed by Del. Brian J. Feldman to spur investment in biotechnology companies cleared the House of Delegates.

As amended, the bill would provide tax credits of up to $50,000 for individuals and $250,000 for corporations that invest in biotech startups.

The amended version leaves it to the governor to decide how much money should be spent each year on the program, whereas the original draft was a $12 million initiative that would have provided larger credits.

"The key is to get something on the books this year," said Feldman (D-Dist. 15) of Potomac, who proposed a similar bill last year.

"Hopefully, next year we can expand it."

The bill awaits action by the Senate. A similar bill proposed by the Ehrlich administration has not emerged from either chamber.

Lawmakers also are moving forward on legislation reviving a $6 million-a-year tax credit for research and development sought by high-tech and manufacturing companies. Gov. Robert L. Ehrlich Jr. (R) proposed doubling money for the credit to $12 million, but the legislature opted to level-fund it instead.