Waltham, MA – The Massachusetts Life Sciences Center announced today that the Center’s Board of Directors has awarded $21.2 million in tax incentives to 28 life sciences companies. The recipient companies have committed to creating more than 940 new jobs in the Commonwealth this year.
The Life Sciences Tax Incentive Program, established in 2008 as part of the state’s ten-year, $1 billion Life Sciences Initiative, 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 ten 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 third year that incentives have been provided under the program. Twenty-nine (29) companies have active tax incentive awards totaling $38.5 million awarded in 2009 and 2010. Those companies created a total of 1,588 jobs after receiving their tax incentives (1,106 of which were created by the companies under the Program).
“We started the Life Sciences Initiative to position Massachusetts as a global leader in life sciences innovation and job growth,” said Governor Deval Patrick. “These incentives will build on that progress and keep Massachusetts at the forefront of the innovation economy and medical discovery.”
“The Center’s tax incentive program continues to provide a solid return on the state’s investment by holding life sciences employers who receive our incentives accountable for their job creation commitments,” said Dr. Susan Windham-Bannister, Ph.D., President & CEO of the Massachusetts Life Sciences Center. “Our tax incentive program is stimulating the Massachusetts economy by supporting innovation and growth at life sciences companies large and small.”
“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 Jay Gonzalez, Co-chairman of the Center’s Board of Directors. “The Governor’s Life Sciences initiative not only offers hope to those waiting for cures for diseases, but to the Commonwealth as a whole as we look to grow our economy and lay the foundation for long-term economic competitiveness and success.”
The Tax Incentive Program is jointly administered by the Center 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 Center 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.
“As the world technology leader in the development of fast whole blood analyzers, point of care, hand held meter and strip based systems for glucose, ketone, lactate and creatinine testing, SMBG products and Chemistry Analyzers for Biotechnology, Nova Biomedical is proud and fortunate to be participating in the MLSC tax incentive program,” said Reno Nolli, Director of Treasury Operations for Waltham-based Nova Biomedical Corporation. “We have been the recipient of two significant tax incentives in 2009 and 2010 that have helped support the Company’s growth, particularly with the acquisition and outfitting of our new 80,000 square foot manufacturing facility in Billerica, Massachusetts, and the hiring of new employees in Massachusetts. Nova Biomedical employs 535 full-time employees in Massachusetts and over 800 world-wide.”
About the Massachusetts Life Sciences Center
The Massachusetts Life Sciences Center (MLSC) 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 Center 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 Center 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.
