A new proposal by Maryland Governor Martin O’Malley would raise investment capital for new business incorporations or small businesses in the state’s technology and life sciences industries.
Under the plan – called InvestMaryland – insurance companies would purchase tax credits, which they could use in 2015 or beyond. The money would then be split between the Maryland Venture Fund and other venture capital firms for investment in Maryland companies.
The Maryland Venture Fund, since its creation in 1997, has invested $51 million in more than 200 emerging companies, yielding $61 million in returns.
“We believe this initiative can spur the creation of thousands of jobs and secure $100 million in venture capital to unlock hundreds of millions and perhaps billions in economic activity,” Governor O’Malley said, as he announced the plan to business leaders at a technology conference on Tuesday.
GovMonitor.com says that nearly 50,000 Maryland residents work in life sciences, telecommunications and biotechnology in an area called “DNA Alley.”
The Washington Examiner says that the proposal continues a trend of increased investment in entrepreneurs looking to start a corporation. In April, the state legislature expanded a biotechnology tax credit, which gives up to a 50 percent credit.
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