WASHINGTON, July 25, 2011 /PRNewswire-USNewswire/ -- At an event at the University City Science Center in Philadelphia, U.S. Senator Robert Casey (D-PA) and U.S. Representatives Chaka Fattah (D-PA), Allyson Schwartz (D-PA) and Pat Meehan (R-PA) announced today they will introduce legislation that provides tax incentives for small and mid-sized businesses to invest in life sciences research and development on a targeted basis. The Life Sciences Jobs and Investment Act of 2011 provides an opportunity to enhance medical innovation, life sciences education and job creation in the United States.
The legislation offers businesses two opportunities to create incentives for investment in life sciences research and development. Businesses will either have access to additional tax credits for life sciences research and development or tax advantages to make it more attractive for them to bring their foreign investments back to the U.S.
The Life Sciences Jobs and Investment Act will allow companies to:
"This legislation will help strengthen the biotech sector's culture of innovation, discovery, education and job creation across the nation," said Stephen S. Tang, Ph.D., MBA, President and CEO of the University City Science Center. "The Life Sciences Jobs and Investment Act is key to the long-term success of this crucial industry sector and will help us maintain our competitive edge as we ensure that biotech in the region – and the entire country – continues to grow and thrive. We look forward to helping our nation's innovators advance science and technology and invent new products that will change the world – while creating new jobs and economic growth along the way."
Members of Congress Stress Strong Support for Investment and Job Growth
"This legislation will help U.S. businesses create jobs and maintain a competitive edge in a challenging global economy," said Senator Casey. "Investing in life sciences research and development is critical to ensuring that Pennsylvania and the U.S. remain at the forefront of innovation and economic growth."
"Targeted investments in life sciences are vital to our economy. In Philadelphia alone, life sciences is responsible for one out of every six jobs and generates 15 percent of all economic activity," U.S. Rep. Allyson Schwartz said. "This legislation will enhance medical innovation, life sciences education and high quality job creation across the country through targeted tax incentives. It promotes the type of opportunity businesses need to create private sector economic growth. Providing business with these tax incentives will ensure America remains on the cutting edge of research and development."
"This bipartisan legislation will encourage significant investment in the life sciences industry – an industry that is so important to our local economy and to creating high quality jobs in our region," said Congressman Meehan. "Incentivizing life sciences research and development will not only bolster our regional economic growth, it will also keep the U.S. at the forefront of our competitive global economy."
Domestic Investment Spurs Job Growth
American companies invest globally primarily to expand markets, attract talent, and otherwise compete in a global marketplace. These competitive factors, coupled with the high U.S. tax rate, have caused an estimated trillion dollars in foreign earnings to remain abroad, often as "permanently reinvested" earnings.
"In the aftermath of the liquidity crises and Great Recession of 2008 and 2009, it is essential that the U.S. pursue policies that allow -- even if only on a temporary basis -- the redeployment of overseas earnings to address domestic capital needs," said David Jory, spokesperson for the Life Sciences Investment Act Coalition. "We should pursue an economic strategy that makes it more attractive for some capital now invested abroad to be invested domestically, provided that the capital is invested in specific projects, such as life sciences jobs, research, and infrastructure, and only if it is paid from funds that are otherwise permanently invested abroad."
The Life Sciences Jobs and Investment Act provides access in the U.S. to capital otherwise unavailable, and directs it to targeted activities in life sciences that are recognized as essential to the future success of our nation.
"This policy will assist in directing funds to the thriving network of research institutions, business incubators, and private companies that contribute to the innovation environment in Pennsylvania," said Christopher P. Molineaux, president of Pennsylvania Bio. "Pennsylvania Bio thanks Senator Casey, as well as the entire Pennsylvania Congressional Delegation, for their ongoing support of Pennsylvania's life sciences industry."
Just as a domestic tax policy that provides investment incentives is a critical factor in the success of the biopharmaceutical industry, an equally important factor is ensuring the availability of an educated, skilled workforce that will sustain a competitive and robust bioscience cluster over the long term. The U.S. has established itself as a leader in the life sciences through the successful collaboration between industry and institutions of higher learning, including universities, academic medical centers, medical research centers, and others. The U.S. must continue to encourage this collaboration and not stand idle while our foreign competitors in the life sciences continue to dedicate financial resources to such arrangements. A domestic tax policy that provides investment incentives for collaborative agreements between life science companies and universities will help develop the future of an educated, science-based workforce.
About The Science Center
The University City Science Center accelerates technology commercialization, regional economic development, and the market availability of life-enhancing scientific breakthroughs by bringing together innovations, scientists, entrepreneurs, funding, laboratory facilities, and business services. Established in 1963 and headquartered in Philadelphia, PA, the Science Center was the first, and remains the largest, urban research park in the United States. Graduate organizations and current residents of the University City Science Center's Port business incubators have created more than 15,000 jobs that remain in the Greater Philadelphia region today and contribute more than $9 billion to the regional economy annually. For more information: www.sciencecenter.org.
About the Coalition
The Life Sciences Investment Act Coalition represents a diverse group of patient, academic, biotechnology, pharmaceutical, medical device, research and other organizations in the life sciences industry. The coalition is leading the charge promoting policies that encourage research and investment to generate high quality jobs, keeping the United States on the cutting edge of global competitiveness, promoting good health, and enhancing the overall quality of life. The key component is the Life Sciences Investment and Jobs Act, which incentivizes research and investment in life sciences on a targeted basis. Under the bill, a taxpayer engaged in life sciences can elect an increased tax credit for the first $150 million of research in life sciences. Alternatively, the taxpayer can elect to return up to $150 million of foreign earnings to the United States free of taxation for investment in new jobs, new research, or new infrastructure in the life sciences. For more information on the coalition and the Life Sciences Jobs and Investment Act of 2011 please visit www.lifesciencescoalition.org.
|SOURCE The Life Sciences Investment Act Coalition|
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