Leaders of the downstate business and medical research communities are hailing a $620 million, ten-year plan to build a state-wide life sciences industry cluster that was put forward by Governor Cuomo and adopted by the legislature as part of the 2017-18 state budget this weekend. The Regional Economic Development Councils of Long Island, the Mid-Hudson Valley and New York City, as well as the Long Island Association, Partnership for New York City, and Business Council of Westchester, have been leading advocates for what they contend will be New York State’s next big industry, projected to add over $3 billion in annual economic activity and 24,000 new jobs.
The details of the plan include:
Capital Funds
- $320 million for services and expenses, loans, and grants as well as costs associated with program administration for a life sciences initiative. Eligible costs may include, but are not be limited to lab space, equipment, technology, R&D, and venture capital investments in support of a comprehensive life sciences cluster strategy. $320 million includes $10 million annual cap on venture capital funding and $20 million for bioscience research labs and academic medical centers.
R&D Tax Credit
- For a company that employs ten or more persons during a taxable year, a fifteen percent credit for qualified R&D expenses can be claimed;
- For a company that employs less than ten persons during a taxable year, a twenty percent credit for qualified R&D expenses can be claimed;
- Companies have a $500,000 annual tax credit limit. There is a three-year limit per company.
- $10 million aggregate cap annually.
Kathryn Wylde, President and CEO of the Partnership for New York City said, “This forward-looking commitment to life sciences puts New York at the forefront of one of the world’s fastest growing industries, leveraging the enormous assets of our medical research institutions to generate new businesses and jobs.”
Kevin Law, President and CEO of the Long Island Association and Co-Chair of the LI REDC said, “New York has invested heavily in basic research over the years, but with Governor Cuomo’s new program, we are moving to support the growth of businesses that will generate a real return on that investment for the state and for our great academic medical centers and research institutions.”
Cheryl A. Moore, President and CEO of the New York Genome Center said, “This investment helps foster a more vibrant life science community in our region by creating jobs to attract talented researchers, entrepreneurs and innovators, and will allow the sector to ultimately gain insights leading to treatments, diagnostics and therapeutics for serious disease. This investment benefits all New Yorkers, both by making us more competitive, and by leading in life science innovation.”
Marsha Gordon, President and CEO of the Business Council of Westchester said, “The Mid-Hudson region has Regeneron, which is a model for what can be accomplished: a homegrown company that today has 4000 employees. We have a base to build on, but state incentives are necessary to expand and accelerate the growth of our commercial life sciences cluster.”
Winston Fisher, New York City REDC Co-Chair said, “The New York City region is looking forward to partnering with other regional councils to leverage our widely varied assets into a powerful cluster of life sciences activity that diversifies our economy and creates good jobs.”