The Biotechnology Jobs Growth Act of 2006, a bill sponsored by legislative leaders to attract and keep biotechnology and biomanfacturing firms in Rhode Island, is headed to the governor’s desk.
The legislation was transmitted to the governor Tuesday by both the House and the Senate, after it passed in concurrence in the House Tuesday and in the Senate May 16.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
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The governor scheduled a signing ceremony for the bill Wednesday in the State Room on the second floor of the State House.
The legislation focuses on the economic incentives that – coupled with physical infrastructure investments and the availability of skilled labor – are viewed as critical to attracting biotech and biomanufacturing investment. The bill extends the biotechnology tax credits period from seven to 15 years, making Rhode Island tax policy competitive with that of Connecticut, Massachusetts, New Jersey, New York and Pennsylvania.
It also establishes minimum performance standards that companies must meet to claim the credits. For instance, companies would be required to provide compensation that is at least 25 percent higher than average for full-time employees in Rhode Island, maintain existing jobs and increase the number of jobs by at least 9.5 percent after four years.
Biotech companies in the state have said that the extension for taking the credits is necessary for the tax credit program to be effective. It typically takes several years of research and development before biotechnology products start returning profit, and by that time, a company’s ability to take the credit may have expired under the existing program.
