Expedited Bill No.                          34-11           

Concerning: Biotechnology Investment Incentive Tax Credit Supplement - Amendment     

Revised:    11-22-11          Draft No. 6  

Introduced:      October 25, 2011           

Expires:          April 25, 2013                

Enacted:         November 29, 2011        

Executive:       December 7, 2011          

Effective:        December 7, 2011          

Sunset Date:  None                             

Ch.   23    , Laws of Mont. Co.    2011    

County Council

For Montgomery County, Maryland

By: Council President at the Request of the County Executive

AN EXPEDITED ACT to:

            (1)        clarify the proportion of the annual Biotechnology Investment Incentive Tax Credit Supplement an applicant may receive; and

            (2)        generally amend the law relating to the Biotechnology Investment Incentive Tax Credit Supplement.

By amending

            Montgomery County Code

            Chapter 20, Finance

            Section 20-76A

Boldface Heading or defined term.

Underlining Added to existing law by original bill.

[Single boldface brackets] Deleted from existing law by original bill.

Double underlining Added by amendment.

[[Double boldface brackets]] Deleted from existing law or the bill by amendment.

*   *   *                                                  Existing law unaffected by bill.

The County Council for Montgomery County, Maryland approves the following Act:

          Sec. 1. Section 20-76A is amended as follows:

20-76A. Biotechnology [investment incentive tax credit supplement] Investment Incentive Tax Credit Supplement.

[[*     *        *]]

(a)     The Director of Finance must pay, by January 31 each year, subject to appropriation, a Biotechnology Investment Incentive Tax Credit Supplement to each applicant who meets certain eligibility standards.

(b)     An applicant, who need not be a County resident, is eligible to receive the Supplement if:

(1)     the applicant has been designated as a qualified investor under state law and has received a final tax credit certificate for the Maryland biotechnology investment incentive tax credit for the preceding calendar year [[in which the Supplement is claimed]]; and

(2)     the tax credit received by the applicant was generated by an investment in a qualified Maryland biotechnology company, as defined in state law, that has its headquarters and base of operations in the County.

(c)      The County Executive, by regulations issued under Method (1), may impose other eligibility standards.  However, those standards must not make any person ineligible to receive the Supplement who would be eligible under subsection (b).

(d)     (1)     The Supplement paid to each [recipient must equal] eligible applicant must equal the product of:

[[(1)]] (A) the amount of the credit received by the applicant under the State Biotechnology Investment Tax Credit Program, divided by the total amount of credits received by all Montgomery County biotechnology companies under the State Biotechnology Investment Tax Credit Program during the preceding calendar year; and

[[(2)]] (B) the total amount of funds appropriated to the Supplement Program for that fiscal year.

(2)     The Supplement paid to any recipient must not exceed:

(A)    50% of [any] the State tax credit [the recipient] [[an eligible applicant]] that recipient receives from the [State biotechnology investment incentive tax credit program, or a lower percentage, set in the annual operating budget resolution, which reflects the relative proportions of the respective annual appropriations for the state tax credit and the County supplement] Maryland Biotechnology Investment Tax Credit Program in [[any given]] the preceding calendar year[[.  An eligible applicant must not receive more than]]; or

(B) 15% of the total annual appropriation for the Supplement program.

(e)      The Director must [[require each eligible person to submit an application for the Supplement]] request from the Comptroller of the Treasury and Department of Business and Economic Development, by January 15 of each year, a list of each qualified investor for a qualified Maryland biotechnology company that was issued a final credit certificate during the preceding calendar year in order to calculate the Supplement paid under subsection (d), and may take any other action necessary to administer the Supplement.  The Executive may issue regulations under Method (1) to [[specify an application process and otherwise]] implement this Section.

(f)      If the Comptroller of the Treasury agrees, the Director may arrange for the Comptroller to pay the Supplement on behalf of the County.  To the extent that the Comptroller does not pay the supplement, the Director must pay it directly to each [[eligible applicant]] recipient.

          *        *        *

          Sec. 2. Expedited Effective Date.

          The Council declares that this legislation is necessary for the immediate protection of the public interest.  This Act takes effect on the date when it becomes law.

Approved: