Agenda Item 7
Michael Faden, Senior Legislative Attorney
Action: Expedited Bill 5-10, Economic Development - Biotechnology Credit
Planning, Housing and Economic Development Committee recommendation: enact
with amendments (2-0-1, Councilmember Eirich abstaining).
Expedited Bill 5-10, Economic Development - Biotechnology Credit - County
Supplement, sponsored by Councilmember Knapp, Council Vice President Ervin,
Councilmember Leventhal, Council President Floreen, and Councilmember Trachtenberg, was
introduced on February 2, 2010. A public hearing was held on February 23, at which Janis Pitts,
Director of the County Life Sciences Strategy in the County Department of Economic
Development, representing the County Executive, and 2 representatives of County biotechnology
firms, supported the Bill. A Planning, Housing and Economic Development Committee
worksession was held on March 1.
Bill 5-10 would commit the County to supplement the state biotechnology investment
incentive tax credit, allowed under Maryland Code, Tax-General Article
10-725 (see ©5-9).
The County supplement, which is a direct subsidy rather than a tax credit, would be 50% of the
state tax credit for an investment in a qualified Montgomery County biotechnology company.
For more details on the state credit, see the fact sheet prepared by County Department of
Economic Development staff on © 10-11.
Fiscal impact: $44,545 (operating costs), $2 million/year (credit supplement).
Economic impact: not estimated, but substantial positive. See OMB fiscal impact statement on
1) Would this spending be effective?
At the hearing Councilmember Andrews noted
that, if this supplement were offered, investors would respond to this government incentive
rather than focus on the prospects for success of the affected firms, thus negating the "pure