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$1 Billion Massachusetts Life Sciences Initiative Launched

By Jack Troast

January 2009

Effective January 1st, 2009, the Massachusetts Life Sciences Center (MLSC) began accepting applications for certification. Life Sciences firms that seek to access funding and benefits under the $1 Billion Massachusetts initiative approved by the legislature and signed by the Governor in June 2008 must be “certified”. This includes benefits available in any of the three following areas: Jack Troast

1. Capital Funding ($500 million)

2. Tax Incentives ($250 million)

3. Grants and Investments ($250 million)

The Advisory Services Practice Group at T3 Advisors, LLC (www.t3advisors.com) has been closely following the rapid “ramp-up” of the MLSC over the past 6 months, attending board meetings and having discussions with key Center staff. This is part of our commitment to combining expertise in both real estate and incentives as a single comprehensive service for our corporate clients. We believe this is a unique capability. John G. Troast (Jack), Managing Director of the Advisory Services Practice Group, is a former senior economic development official in the Romney Administration and has over 20 years of real estate development experience.

The funding is targeted for companies and projects that promote economic development and advance research, and report medical advances in treatments, therapies, and cures. The goal is to strengthen and protect Massachusetts global leadership position in the life services. The MLSC intends to make focused investments at adequate levels to have an economic impact. A brief summary of the key components of the legislation are as follows:

Capital Funding- Administered by the MLSC thorough the Massachusetts Life Sciences Investment Fund, approximately $300 million of the $500 millions in capital funds, have been allocated for large infrastructure projects including the rNAI Institute at UMass Worcester, a $10 million bio engineering facility at UMass Lowell, and a like size investment in marine biology at the Woods Hole Oceanographic Institute. $200 million remains available to fund life sciences capital projects with the resources committed through the inssuance of 20 year bonds.

Tax Incentives- The legislation offers nine (9) new tax incentives including a 10% investment tax credit (ITC), increased from 5%, as well as credits and deductions for FDA user fees and qualified clinical testing. These incentives represent additional tax incentives currently available to Massachusetts Life Sciences companies . Other benefits exist through two independent stimulus bills approved during the Romney Administration. This includes tax credits available to life sciences firms that create new qualified jobs.

Accelerator Investment Program:- The MLSC will also manage $250 million in grant and investment funding aimed at early stage companies with growth prospects in Massachusetts. The MLSC plans to target investments in areas where a funding gap exists for promising companies and technologies. This includes direct equity investment, bridge loans, and research grants that support key linkages with higher education.

The MLSC is also tasked with identifying five (5) Regional Technology and Innovation Centers across the Commonwealth. This will support economic development opportunities in all regions of the state.

T3 Advisors would be pleased to assist your company in understanding this unique funding opportunity. Please let us know if you would like to arrange a consultation to review incentives available for a Life Sciences Companies doing business in Massachusetts.