Gov. Andrew Cuomo on Monday said he wants to spend $650 million to grow New York’s life-sciences research cluster including public-private partnerships.
The $650 million life-sciences initiative includes $250 million in tax incentives for new and existing life-science companies, Cuomo’s office said in a news release issued Monday.
It also involves $200 million in state capital grants to support investment in wet-lab and innovation space; and $100 million in investment capital for early-stage, life-science initiatives, with an additional match of at least $100 million for operating support from private-sector partnerships.
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In addition, the state will provide $17 million in capital funding to launch JLABS @ NYC, which Cuomo’s office describes as a “collaboration” between Johnson & Johnson Innovation and the New York Genome Center to build a 30,000-square-foot incubator with capacity for up to 30 life-science startups.
The New York Genome Center, located in New York City, is an “independent nonprofit at the forefront of transforming biomedical research and clinical care,” the governor’s release stated.
Cuomo noted the life-sciences initiative during the first of his regional State of the State addresses held Monday morning in New York City.
The life-science sector includes the fields of biotechnology, pharmaceuticals, biomedical technologies, life-systems technologies, and includes organizations and institutions that “devote the majority of their efforts to the various stages” of research, development, technology transfer and commercialization.
These firms are also making “significant advancements” in agriculture and environmental biotechnologies, “helping create a cleaner and more sustainable future.
“The ever-evolving life science sector is discovering solutions to the most pressing problems of our time, helping to cure disease and save lives around the world,” Cuomo said in the news release. “New York is poised to be a global leader in this industry, and the new, vital incubator JLABS will be the catalyst that pushes our state into the forefront of this exciting field. I look forward to working with Johnson & Johnson and the New York Genome Center to build momentum in the life science industry and establish New York as the home of discoveries that will drive the economy and create a better future for all.”
Additional details
Cuomo’s proposal would include $250 million in tax incentives for new and existing life-sciences companies that are expanding research and development.
His office contends the state “must draw more capital to this sector” from early stage and angel investors “to better compete with other states actively poaching New York’s top life-science research talent.”
The additional capital would “make it more attractive” for existing and new firms in life sciences to “locate, invent, commercialize and produce” in New York.
Under Cuomo’s program, existing life-science businesses would be eligible for an annual allocation of $10 million in Excelsior tax credits.
New life-science businesses would also receive a 15 percent refundable tax credit on all new qualifying research and development expenditures. Small businesses in the life-sciences industry could be eligible for a 20 percent credit.
Additionally, angel investors would receive a credit of 25 percent of their investment, with a maximum of $250,000 per investor.
The proposal also includes spending $200 million in state capital grants over 10 years and offering more than 4.2 million square feet of space and 2,038 acres of developable land tax free to “accelerate life-science innovation” at 62 colleges and universities statewide.
Cuomo’s proposal also has the state pledging $100 million for additional investment capital for early stage, life-science firms.
In addition, private-sector partnerships are also pledging matching funds for investment and operational support, bringing the total commitment to $200 million.
Part of the investment would include a new life-science launch competition, modeled on Buffalo’s 43North competition, which would “further support the growth of this sector.”
Contact Reinhardt at ereinhardt@cnybj.com