Soon, we will be introducing legislation to restart the Innovate in PA tax credit program.  First enacted as part of Act 52 of 2013, the original Innovate in PA program authorized the sale of $100 million in Insurance Premium Tax Credits at a reduced rate to generate immediate capital to invest in the Commonwealth’s biotech/life sciences. Taxpayers who purchased the credits then applied them to their insurance premium’s tax liability in future years.  The highly successful program generated approximately $85 million for the biotech industry.

Our new iteration of Innovate in PA will operate as the original program did but offer for sale $350 million of deferred insurance premium tax credits.  The sale of tax credits would not occur before October 1, 2026, and tax credits would not be redeemable until 2030.  The total amount of tax credits applied against insurance premiums tax in a fiscal year would be capped at $70 million per year beginning in calendar year 2030.
Like the original program, funds generated from the tax credit sale will be invested in programs that will support the Commonwealth’s biotechnology/life sciences industry. Our proposal distributes the funds as follows:

• CFA -- 40% for grants or loans to support the construction of commercial lab space, incubators, applied research and development facilities, and related public improvement and public interest projects.
• Venture Investment Program -- 25%
• Regional biotechnology research centers -- 10%
• Labor & Industry -- 10% for grants to fund:
  • new partnerships between biotechnology and life science companies, training providers, and educational institutions.
  • programs that provide opportunities to prepare a diverse range of students from diverse backgrounds for careers in the biotechnology or life sciences sector.
  • programs designed for 11th and 12th grade students from historically underrepresented or economically disadvantaged communities and who have an interest in biotechnology or life sciences research.
  • programs that provide personalized entrepreneurial education for first time founders of biotechnology or life science ventures of any development stage.

• DCED -- 8% for grants to life science companies and institutions of higher education for recruitment and retention initiatives to attract and retain exceptional life science researchers.
• Ben Franklin Technology Partners – 7%.

Please join us in co-sponsoring this legislation to restart this proven, successful program to invest in the Commonwealth’s biotechnology/life sciences industry.