PHED Item 2
Planning, Housing and Economic Development Committee
Faden, Senior Legislative Attorney
Bill 34-11, Biotechnology Investment Incentive Tax Credit
Supplement - Amendment
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, ©10-15.)
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 ©4 noted, the limited County appropriation for this
supplement in FY12 (the supplemental appropriation in Item 1 on today's Committee agenda
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% ofthe total County appropriation.
Council staff recommendation:
approve this formula revision.
Former Councilmember Mike Knapp, speaking for several biotechnology
companies (see testimony, ©11-14), suggested several further amendments to this Bill (see ©16).
Those amendments would better integrate the state tax credit and County supplement and set an
annual January 31 deadline to pay the supplement. To have the data to pay the supplement on