Venture capital is sorely lacking for Maryland’s biotech sector. No one questions that. But determining how to get more cash is anything but a consensus builder. Maryland lawmakers are intensely debating two bills, one proposed by Gov. Bob Ehrlich that would provide tax credits for investments in technology-related compaines and one backed by biotech industry execs and venture capitalists that they say will generate cash for local businesses and entice VCs to open offices in the state. As other states roll out biotech-directed incentives -- including tax credits, investments in pension funds and use of tobacco settlement money -- Maryland needs to hash out its differences and get in the game. Ehrlich’s bill, the Entrepreneurial Investment Technology Tax Credit, would apply only to angel investors who commit money to tech and biotech companies with up to 25 employees. The second bill, called the Biotechnology Investment Incentive Act and backed by more than 80 lawmakers, would apply to angels, corporate investors and venture capitalists who invest in biotech businesses that have at most 100 workers. A recent University of Georgia study estimates that the biotech incentive bill could create more than 5,000 jobs over the next six years. The study didn’t provide estimates for Ehrlich’s legislation, though state officials say that bill would also create many jobs. Both sides say combining the bills is an option. A Senate committee heard testimony Feb. 23; the House committee hearing was March 9. Following the hearings, officials on both sides say they believe a compromise is likely. The committees will vote on the bills in the next few weeks. Some believe it’s now or never.
