Permanent R&D Tax Credit Would Boost Upstate New York Bio/Med Business and Jobs

Jan. 11, 2011 - PRLog -- SYRACUSE, N.Y.—During stops in Buffalo, Rochester and Syracuse yesterday, U.S. Senator Kirsten Gillibrand announced a new proposal to make the Research and Development Tax Credit permanent—a move that would greatly boost jobs and business growth for Upstate New York bioscience and medical technology companies.

According to Sen. Gillibrand, making the tax credit permanent would increase private investments and provide stability and certainty to innovative businesses and institutions. “This is the kind of idea that can move us forward in creating a stronger economy and creating the jobs that are so desperately needed,” Gillibrand said.

The senator’s proposal would:
>      Expand the current credit by changing the formula to provide greater incentive for companies to increase investment
>      Simplify the current credit, which is highly complicated and confusing.
>      Make the new credit permanent, which would provide private companies with the confidence they need to make significant future investments in R&D.

“R&D is vital for the Bio/Med industry in Upstate New York,” said Heather Erikson, president of MedTech and co-chair of the State Medical Technology Alliance. “Supporting more competitive incentives and investments in these areas, on both a state and national level, will contribute to our industry’s ability to develop major scientific and medical breakthroughs that fuel business growth, create new employment opportunities, and promote economic vitality.”

The bioscience and medical technology industry relies heavily on higher-paying, knowledge-based jobs. It is one of the most stable industries in New York State paying employees an average salary of $70,200 compared to the state’s overall average wage of $60,400, according to the most recent data from the Empire State Development Corporation. There are more than 200 Bio/Med companies located in Upstate New York, 70% of which are headquartered here.

For more information about the Upstate Bio/Med industry, visit http://www.medtech.org.

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MedTech is an active association of pharmaceutical, biotech, and medical technology companies, their suppliers and service providers, and research universities. For more information, visit http://www.medtech.org.