Agenda Item 6
t\Michael Faden, Senior Legislative Attorney
Bi1134-l1, Biotechnology Investment Incentive Tax Credit Supplement
Planning, Housing and Economic Development Committee recommendation: enact
Bill 34-11, Biotechnology Investment Incentive Tax Credit Supplement - Amendment,
sponsored by the Council President at the request of the County Executive, was introduced on
October 25,2011. A public hearing was held on November 15 (see testimony, ©12-17) and a
Planning, Housing and Economic Development Committee worksession was held on November
Bill 34-11 would revise the formula to determine the annual Biotechnology
Investment Incentive Tax Credit Supplement an investor may receive. Under the current law,
County Code §20-76A, enacted in Bill 5-10 in March 2010, a "qualified investor" in a "qualified
Maryland biotechnology company ... that has its headquarters and base of operations in the
County" who receives a tax credit certificate from the State is also entitled to an added 50% of
the State tax credit. The Council can set a lower percentage in the annual operating budget
resolution to reflect the relative proportions of the State and County appropriations for this
As the Executive's memo on ©6 noted, the limited County appropriation for this
supplement in FYl2 (the supplemental appropriation which the Committee also recommended
would set this amount) makes it impossible to pay the supplement as the law originally intended.
Under this Bill, the County supplement paid to a qualified investor would instead be calculated
as the proportionate share that company receives of the total credits received by all County
biotechnology companies, multiplied by the total appropriation for the County supplement.
However, the law would specify that an eligible investor cannot receive more than either 50% of
the state tax credit or 15% of the total County appropriation.
approve this formula revision.
Former Councilmember Mike Knapp, speaking for several biotechnology
companies (see testimony, ©13-16), suggested several further amendments to this Bill. Those
amendments would better integrate the state tax credit and County supplement and set an annual