Top Priorities

1. Expansion of the QETC tax credit
The QETC facilities operations and training credit (currently capped at $250,000 for facilities operations and $50,000 for training) has been one of the most successful incentives for growing biotechnology companies in New York. Bills concerning the expansion of this credit have been introduced in both the Senate and Assembly and NYBA urges passage.

• Dean Skelos QETC Enhancement Bill (Senate, S3430 Skelos). This bill would significantly enhance the existing QETC facilities operations and training credit by raising the gross revenue eligibility from $20 million to $40 million, and by raising each of the credits as well as the total credit to $500,000 for facilities and operations and $100,000 for training credits.
• Joseph Morelle QETC Investment Credit Bill (Assembly, A2400 Morelle). This bill would repeal the old capital tax credit and create a new credit that doubles both the percentages and the total amount of each of the various credits. In addition, it creates a new category for qualified QETC fund investments.

• Bioscience Tax and Business Climate Incentives
  • Research and Development (R&D) Tax Credits
    Currently, investments in R&D facilities are eligible for a 9% corporate tax credit. Additional credits are available to encourage the creation and expansion of emerging technology businesses, including a three-year Job Creation Credit of $1,000 per employee, and a Capital Credit for investments in emerging technologies. We recommend the Job Creation Credit be modified to increase the credit amount to $2,500 per employee and extend the utilization period indefinitely for qualified companies with less than 100 employees that continue to add jobs in New York.
  • Transferable Research and Development (R&D) Tax Credits
    Many bioscience companies are not profitable for much of the product development and commercialization process due to the high cost of research and clinical development and long, particularly throughout the FDA-regulated clinical trial process. Therefore, we recommend that New York State alllow R&D Tax Credits to be bought and sold by and between life sciences companies within New York
    State.
  • CAPCO Program Enhancement and Expansion
    NYBA suggests expansion of the CAPCO program by providing New York State pension funds to designated venture capitalists that are mandated to invest a minimum percentage of funds into New York State ventures.
  • Maintain Supportive Regulatory Environment
    In order to maintain leadership as a location for the bioscience industry to flourish, NYBA recommends that the Legislature refrain from passing legislation that unduly regulates the bioscience industry in practices that are ultimately governed by the FDA. Specifically, NYBA opposes price controls or similar
    measures, and supports fair reimbursement rates for drugs that are the result of bioscience research. Likewise, NYBA opposes any weakening or elimination of drug re-importation laws.
• Private Equity Investment Program
• Private Equity Investment Program
  Pennsylvania’s Ben Franklin and Quaker Fund programs have been highly successful, allowing for public-private investment collaboration to drive early stage and “valley-of-death” opportunities. NYBA recommends that New York State develop a similar financing assistance and investment program to help support New York State technology innovation in this critical financing area. Rochester’s Excell Partners Inc., for instance, with its focus on very early stage investment is a local model that might be reproduced throughout the State.
• Small Business Technology Investment Fund (SBTIF)
  The Small Business Technology Investment Fund (SBTIF) currently supports emerging companies with debt/equity financing up to $500,000 with a 3:1 match requirement. NYBA is supportive of an investment fund that would allow public money to be combined with private sector funds to provide early stage investment in high-tech companies and technologies. Additionally, NYBA suggests a new infusion of New York State capital into SBTIF so that the maximum investment can be raised to $1M, and the match requirement can be reduced to 1:1.
• Technology Transfer and Commercialization
• The Technology Transfer Incentive Program (TTIP)
  The Technology Transfer Incentive Program (TTIP) currently administered by NYSTAR, can provide up to $750,000 to an academic research institution, in collaboration with a New York State corporate partner, to develop and commercialize technology. The TTIP disallows pplications with commercialization time frames of more then 2-3 years; as most bioscience products require between 3-15 years from concept to market, this time requirement diminishes the value of this program for the biosciences industry. Therefore, we recommend an extension of the required commercialization time frames.
• Innovation Match Program to Advance and Commercialize Technology in New York (IMPACTNY)— An NIH SBIR/STTR Phase II Matching Grant
  We recommend that New York State take the next step to help small bioscience companies grow through a competitive National Institutes of Health (NIH), National Science Foundation (NSF), Department of Defense (DOD) or similar government agencies participating in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase II matching grant program. This Innovation Match Program to Advance and Commercialize Technology in New York (IMPACT-NY) will enhance the development of earlytage firms that have validated their science and commercialization strategy by obtaining SBIR/STTR Phase II grants from the federal government. As part of this program, New York State will provide up to $250,000 in matching funds for successfully funded NIH SBIR/STTR Phase II applications. Utilization of matching grants provided by New York State on a competitive basis will be limited to equipment purchases, facility improvements, select salary support, and intellectual property protection. In addition, companies receiving such support will be required to remain in New York State for a minimum of three consecutive years following investment, or the grant converts to a government loan.
• Bioscience Facilities for Growth
  • Biosciences Good Manufacturing Practices (GMP) Facility Assistance Program
    We recommend that New York State make available grants up to $500,000 for bioscience companies creating/expanding GMP facilities that will create and/or retain 50+ jobs ($2.5M/year program).
• Bioscience Workforce Development
  • Bioscience Workforce Development Bioscience Workforce Development and Training Assistance Program.
    We recommend that at least $250,000 in annual funds be made available and allocated to companies, institutions and organizations on a competitive basis to develop curriculum and administer bioscience specific training programs for current and prospective industry employees. Moreover, we recommend expansion of the Building Skills in New York State (BUSINYS) training grant program (http://www.workforcenewyork.com/rfa32-i/rfa32-i.html), with specific emphasis on the bioscience industry.
• Patient Access to Innovative Therapeutics and Devices
  • Patients in the U.S. are offered the latest and best medicines because our national policies have fostered innovation and ensured that patients can benefit from this innovation. This is not the case in many countries. It is important that New York reflect this commitment to innovation by ensuring that state programs and policies do not unduly limit a patient’s ability to receive, in consultation with
    their doctors, the best therapies and devices for him or her.