Governor Cuomo announces US$650 million life sciences funding initiative

by Dentons
Contact

Dentons

On December 19, 2016, New York Governor Andrew Cuomo announced a US$650 million life sciences initiative aimed at creating an industry and research "cluster" in New York state. The life sciences sector, generally defined as encompassing the fields of biotechnology, pharmaceuticals, biomedical technologies and life systems technologies, will be supported in three main ways by the governor's initiative. The announced life sciences initiative proposes a multifaceted approach to incentivize the growth of the industry in New York state.

The initiative contains three significant financial components. First, recognizing the efforts by other states to poach New York's life sciences research talent, Governor Cuomo's initiative will provide US$250 million in tax incentives for new and existing life sciences companies to expand research and development in the state. New York aims to use the tax incentives to bring additional capital to the life sciences sector from early-stage and angel investors, as well as to bring existing firms to New York to "locate, invent, commercialize and produce" in the state. The US$250 million would consist of (a) an annual US$10 million distribution of Excelsior tax credits to eligible existing life sciences businesses, (b) a 15 percent refundable tax credit to new life sciences businesses for all qualifying new research and development expenditures (with small businesses potentially eligible for a 20 percent credit) and (c) a tax credit to angel investors in the amount of 25 percent of their investment, with a maximum of US$250,000 per investor.

Second, New York would provide US$200 million in state capital grants over a 10-year period, and allocate more than 3.2 million square feet of space and 1,100 acres of developable land, tax-free, to accelerate life sciences innovation in the state. The tax-free space will be located at 45 colleges and universities across the state, including campuses and land in New York City.  

Finally, the program will include US$100 million in investment capital for early-stage life sciences initiatives, which will be matched by at least US$100 million from the private sector. This funding will be allocated to early-stage life sciences firms, and will include a new life sciences launch competition modeled on the "43North innovation competition." Pursuant to this effort, the state will host quarterly, 13-week regional life sciences launch competitions, in which firms conducting research and developing emerging technologies would compete for US$25,000 in grant funding. These quarterly competitions would culminate in a competition to take place at an annual statewide Life Sciences Summit, where the quarterly winners will vie for one of five US$100,000 top business launch prizes.

In addition to the financial incentives, Governor Cuomo's initiative includes programs and partnerships to attract researchers to work with New York academic centers and medical schools, including a life sciences internship program, a life sciences researcher recruitment program, entrepreneurial advisory panels and a Life Sciences Advisory Board designed to guide this initiative. Governor Cuomo will more fully unveil the life sciences initiative, including the composition of the new Life Sciences Advisory Board, at his State of the State address in early January 2017.

More details on this initiative, including a regional breakdown of the available innovation space and developable land, can be found in the governor's press release.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.