Investors line up for Maryland Bio Tax Credits
I know that demand for Maryland's Biotech Tax credit has been overwhelming, but Tuesday morning's turnout at DBED was quite an event. More than a dozen investors waited in line early July 1 and some even camped-out all night in Baltimore to apply for a portion of the State's coveted $6 million Biotechnology Investment Tax Credit.
The program encourages investors to provide seed and early-stage funding to qualified, privately held Maryland biotechnology companies and has already leveraged more than $24 million in private investment since its inception in 2006. To build on that success, Governor O'Malley recently announced the Bio 2020 Initiative, an innovative $1.1 billion investment that includes quadrupling State funding of the highly successful Biotech Investment Tax Credit by 2013.
The Maryland Biotechnology Investment Tax Credit program provides tax credits equal to 50 percent of an eligible investment, and investors make an equal match. To qualify for the credit, companies must: be less than 12 years old; be headquartered in Maryland; employ fewer than 50 people, and have a valid certification from the Department of Business and Economic Development. Investors are required to submit applications prior to making an investment. DBED reviews the applications and issues initial credit certifications within 30 calendar days.
For more information about the Maryland BioTechnology Investment Tax Credit, program, send an email to taxincentives@choosemaryland.org.
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State invests in Western Maryland Industrial Park
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Two weeks ago, another step was taken toward Governor's Martin O'Malley's vision for a One Maryland economy. The Governor announced that the State has approved a $2.5 million investment in the Riverside Industrial Park in Cumberland. Made through DBED's One Maryland program, the investment will help Allegany County repurchase and make improvements to three industrial buildings in the park totaling 338,000 square feet.
The buildings became available when the owner, Biederlack of America, a well-known blanket manufacturer, downsized its workforce earlier this year. Once the buildings are purchased, the county plans to lease 125,000 square feet back to Biederlack, which wants to maintain a presence in Cumberland. The remaining space will be converted into flex, industrial and warehouse space suitable for new businesses.
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MD's payroll still up despite weak U.S. economy
Maryland payroll employment increased by 1.0 percent over last year but the U.S. economy lost another 49,000 jobs in May, following job losses that totaled over 300,000 since the beginning of the year. Nationally, employment continued to decline in construction, manufacturing, retail trade, and temporary help services, while health care continued to add jobs.
The national economy did manage to grow - as measured by real gross domestic product - at an annual rate of 1.0 percent in the first quarter of 2008, according to final estimates released by the Bureau of Economic Analysis. The continuing slow growth of the economy reflected continuing weakness in residential housing, downturns in consumer spending on durable and nondurable goods, and slower growth in business investment.
According to DLLR, Maryland employers have added about 6,500 jobs since January, with May's business survey showing a gain of 1,100 jobs. The effects of an uncertain economy have been seen in the construction, manufacturing and finance sectors, industries which shed a combined total of 1,500 jobs in May. These declines were offset by expansion elsewhere on Maryland's private sector payrolls, with gains in education and health services, and leisure and hospitality leading the positive movement.
Click here to view the job data by sector.
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| MD's Monthly Economic Indicators
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Click to view the monthly tables.
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Maryland makes big splash at BIO 2008 in San Diego
June has been a busy month for biotech in Maryland. Two weeks ago I joined Governor O'Malley and DBED staff at BIO 2008 in San Diego and was very pleased to see such a strong Maryland delegation with 350 Marylanders and  more than 50 Maryland organizations represented at our Maryland Pavilion.
At the conference, Governor O'Malley participated in the Milken Institute press conference and also toured the Maryland Pavilion to meet with Maryland biotech partners. At the press conference, the Milken Institute announced that Maryland has climbed into the No. 2 ranking nationwide for technology economy preparedness. These results are further evidence that Maryland is highly competitive in drawing, retaining, and growing technology-based businesses.
 According to the study, Maryland ranks first in the nation for human capital investment, and, unlike Massachusetts, it places consistently in the top 10 in all five composite indices. Foreshadowing Maryland's rise, the 2004 index predicted the State's successful commercialization of its intangible assets, leveraged by its strengths in life sciences and communication technology. Maryland's 6th-place finish in technology Concentration and Dynamism in 2004 improved to a 2nd-place finish this year. Click here for the complete report or here for the press release.
Earlier in the month, the Governor announced the BIO 2020 Initiative, a plan to invest $1.1 billion in Maryland's bioscience industry over the next 10 years. The initiative is one of the largest state bioscience investments in the country to attract and grow biotechnology companies in Maryland.
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| Imagining a new Maryland |
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On June 18, Governor Martin O'Malley launched Imagine Maryland: 2008-2013, a community collaboration and cultural planning initiative to identify opportunities and ideas that will enhance the roles of the arts in Maryland. The statewide effort will help stimulate economic development, enhance quality of life, attract visitors and nurture artists and arts organizations. Coordinated by the Maryland State Arts Council (MSAC), an agency of DBED's Division of Tourism, Film and the Arts, Imagine Maryland invites the public to participate by attending a regional town hall meeting, an issue based forum, and/or completing an on-line survey.
Over the next few months, the Arts Council will host six regional meetings and more than 10 issue forums throughout the state. The regional meetings will be held in Cumberland, Bethesda, Easton, Dorchester, Baltimore and Prince Frederick. The general public, community and elected officials, artists and arts organizations representatives are invited to attend the meetings. The forums will focus on interest areas such as disabilities and the arts, arts education, seniors and the arts, individual artists and emerging art forms and include statewide leaders in these fields.
For more information about Imagine Maryland, click here. |
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MD adds 26,800 jobs
From May 2007 to May 2008, Maryland employers have added a net 26,800 jobs. In comparison, U.S. payroll employment increased 0.1 percent for the same period. States with the largest rates of growth include Wyoming, Texas, New Hampshire, Colorado and Utah.
Click here to view the job growth chart.
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Worcester County leads unemployment improvement
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Maryland's unemployment rate of 3.8 percent was the 14th lowest rate among states in May. The jobless rate in Maryland is well below the national average of 5.2 percent. Locally, unemployment rates rose across the state, according to Maryland's Department of Labor, Licensing and Regulation (DLLR). DLLR reported that unemployment rates were higher in May in 20 of the state's 24 local jurisdictions.
Baltimore City's rate, rising by 0.8 percentage points over the month, was the statewide high in May at 6.0 percent. However, Worcester County's rate was the most noticeably improved, declining from 7.0 percent to 5.3 percent - a decline resulting from the hiring of seasonal workers to fill job openings in tourism-related industries.
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