The Massachusetts Life Sciences Center (MLSC), an investment agency that supports life sciences innovation, research, development and commercialization, has awarded $19 million in tax incentives to 11 life sciences companies. The recipients have committed to creating 1,075 new jobs in the Commonwealth in 2015.
The Life Sciences Tax Incentive Program was established in 2008 as part of Massachusetts’ 10-year, $1 billion Life Sciences Initiative. The program authorizes tax incentives each year for companies engaged in life sciences R&D, commercialization and manufacturing. The primary goal of the program is to incentivize life sciences companies to create new sustained jobs in Massachusetts.
The Life Sciences Act provides for 10 different incentives, which address the significant capital expenditures associated with the life sciences R&D cycle and the high costs of translating research into commercially viable products. This is the sixth year that incentives have been provided under the program. Fifty-five companies have active tax incentive awards from prior years totaling more than $90 million. Those prior awardees have created more than 5,000 new jobs after receiving their tax incentives.
The Tax Incentive Program is jointly administered by the MLSC and the Massachusetts Department of Revenue (DOR), which oversees the technical administration of the incentives. Jobs that are created must be maintained for at least five years. The Tax Incentive Program mandates that awarded companies submit reports and respond to inquiries by the MLSC and DOR regarding employment figures. If a company receiving a tax incentive under the program does not meet and maintain their minimum threshold for job creation, the credit can be “clawed back” (recovered) by DOR, requiring that the company pay back all or a portion of the tax incentives they’ve received.
“Amgen is pleased to be a recipient of the Life Sciences Tax Incentive Program as we are committed to an expanded workforce in Massachusetts where Amgen staff focus on discovering and developing our innovative therapies,” said Sam Guhan, vice president and Massachusetts site head at Amgen.
The 11 life sciences companies, their awards and the jobs creation commitment are: