Massachusetts Life Sciences Center Awards Tax Incentives to 25 Companies
Recently lauded in the Pew study, Avoiding Blank Checks: Creating Fiscally Sound State Tax Incentives, the Life Sciences Tax Incentive Program was established in 2008 as part of Massachusetts’ 10-year, $1 billion Life Sciences Initiative. The program authorizes up to $25 million in tax incentives each year for companies engaged in life sciences research and development, commercialization and manufacturing. The primary goal of the program is to incentivize life sciences companies to create new sustained jobs in Massachusetts.
The Life Sciences Act provides for 10 different incentives, which address the significant capital expenditures associated with the life sciences R&D cycle and the high costs of translating research into commercially viable products. This is the fourth year that incentives have been provided under the program. Nearly 50 companies have active tax incentive awards totaling more than $50 million awarded during the past four program years. Those companies created a total of more than 1,800 jobs after receiving their tax incentives.
“Our Life Sciences Initiative has positioned Massachusetts as a global leader in life sciences innovation and job growth,” said Governor Deval Patrick. “We are building on that progress and maintaining our edge at the forefront of the innovation economy and medical discovery.”
“The Life Sciences Center's Tax Incentive Program has proven to be effective in Massachusetts as we continue to promote a robust, innovative and growing life sciences industry,” said Lieutenant Governor Timothy Murray. “With this latest round of projects, we welcome more jobs and business development in Massachusetts.”
“The Life Sciences Center’s Tax Incentive Program encourages life sciences companies large and small to create jobs and grow in Massachusetts,” said Dr. Susan Windham-Bannister, President & CEO of the MLSC. “This program continues to provide a solid return to the Commonwealth by holding life sciences employers who receive our incentives highly accountable for meeting their job creation commitments.”
“The companies that will receive these incentives are adding jobs in a cutting-edge industry that is a strength for Massachusetts,” said Massachusetts Administration and Finance Secretary Glen Shor, Co-chairman of the MLSC’s Board of Directors. “The Governor’s Life Sciences Initiative offers hope to those waiting for cures for diseases and solidifies our place as a global leader in the innovation economy.”
The Tax Incentive Program is jointly administered by the MLSC and the Massachusetts Department of Revenue (DOR), which oversees the technical administration of the incentives. Jobs that are created must be maintained for at least five years. The Tax Incentive Program mandates that awarded companies submit reports and respond to inquiries by the MLSC and DOR regarding employment figures. If a company receiving a tax incentive under the program does not meet and maintain their minimum threshold for job creation, the credit can be “clawed back” (recovered) by DOR, requiring that the company pay back all or a portion of the tax incentives they’ve received.
“PAREXEL was honored to receive an incentive in 2012 from the Massachusetts Life Sciences Center,” said James Winschel, Jr., Chief Financial Officer, PAREXEL. “The company, which has been headquartered in Massachusetts since its founding in 1982, has grown to be a leading global bio/pharmaceutical services organization. The award was in recognition of the company’s commitment to the Commonwealth as PAREXEL makes significant investments to expand its Massachusetts facilities and creates highly-skilled life sciences jobs.”
About the Massachusetts Life Sciences Center
The Massachusetts Life Sciences Center is a quasi-public agency of the Commonwealth of Massachusetts tasked with implementing the Massachusetts Life Sciences Act, a ten-year, $1-billion initiative that was signed into law in June of 2008. The Center’s mission is to create jobs in the life sciences and support vital scientific research that will improve the human condition. This work includes making financial investments in public and private institutions that are advancing life sciences research, development and commercialization as well as building ties among sectors of the Massachusetts life sciences community. For more information, visit www.masslifesciences.com.
About the Life Sciences Tax Incentive Program
The Life Sciences Initiative authorizes the MLSC to award up to $25 million in tax incentives each year. Applicants are generally companies that have transitioned or are transitioning from pure life sciences research and development (“R&D”) to commercialization and manufacturing. The MLSC recognizes that many companies struggle to address the significant capital investment associated with the long life sciences R&D cycle and the high cost of translating research into a commercially viable product. This program is designed to help sustain these companies through a critical stage of development and to leverage additional sources of capital to bring cutting edge innovation to the marketplace.