TLDR:
- Maryland’s Biotech Investment Incentive Tax Credit Program (BIITC) has been successful in attracting investment capital and nurturing early-stage companies.
- Proposed legislation in Maryland aims to allow pass-through entities to collect the tax credit at the entity level, optimizing the investment process and enhancing operational efficiency.
Maryland’s Biotechnology Investment Incentive Tax Credit Program (BIITC) has been a valuable asset to the state, incentivizing investment into Maryland-based biotech companies through a refundable tax credit. However, a stipulation in the program has hindered its continued success. Investors in pass-through entities have faced challenges in claiming the tax credit directly, leading to frustration and a decrease in investments. Therefore, proposed legislation in Maryland, HB 744 and SB 702, aims to address this issue by allowing pass-through entities to collect the tax credit at the entity level, streamlining investment processes and aligning the program with industry standards. This change is crucial for attracting investment and supporting the growth of Maryland’s biotech ecosystem.
Access to venture capital is essential for startup companies in high-tech medical and biotech sectors. By aligning with industry norms and offering a more efficient investment process, Maryland can compete on a national and global level with established biotech hubs. Improving investor satisfaction and simplifying the investment experience can lead to repeat investments and continued support for innovative companies. Overall, the passage of HB 744 and SB 702 is seen as a critical step in securing Maryland’s future as an emerging biotech innovation hub.
