Friday, November 7, 2008

Mass. cuts $10M from biotech's billion

By Marc Songini

The state has cut $10 million from this year’s disbursement of its ambitious $1 billion in biotech industry and research incentives.

A spokesman for the Massachusetts Life Sciences Center (MLSC), the agency awarding the funds, confirmed the cut this week, and said the enabling legislation is now on Gov. Deval Patrick’s desk. The state Legislature, facing falling tax revenue, included the reduction as part of an emergency budget passed last week.

Despite the economic downturn, Susan Windham-Bannister, president and CEO of the MLSC, has affirmed publicly the life sciences initiative will continue. As evidence, on Oct. 31, the center’s board approved the first infrastructure disbursement, awarding the town of Framingham a $5.2 million grant to improve its water and sewer system to support Genzyme Corp.’s planned expansion there.

The Massachusetts Life Sciences Act, a hodgepodge of grants, tax breaks, loans, and other incentives to bolster the state’s biotech sector over the next 10 years, was signed into law by Patrick on June 16. The $1 billion will be distributed in a variety of ways: $500 million is slated for capital improvements; $250 million is available in tax breaks, capped at $25 million a year; and some $250 million is part of an investment fund that will pay out $25 million a year, at the center’s discretion. With the cut, that amount will be $15 million this year, and will slow the MLSC’s abilities to offer grants and loans, according to Angus McQuilken, spokesman for the center. Not affected will be the MLSC’s daily operations, the state’s tax incentive program (which goes into effect this January), or the infrastructure grants.