Governor McAuliffe released his proposed budget for the 2016-2018 biennium for consideration by the 2016 session of the Virginia General Assembly. Click here to view the proposed budget presented on December 17, 2015.
Updated April 20, 2016
To view an easy to read table of these policies, click here.
R&D Tax Credits
The Governor’s proposed budget includes $1 million in refundable tax credit and creation of large company tax credit.
Senate finance reported out SB 161 merged in the nature of substitute SB 58. This contains increase for small company credit and $20 million for large company credit.
HB 884 was referred by senate and house
SB 58/161 Increased to $6 million in Y1 and $6 million in Y2
HB 884 Increased to $6 million in Y1 and $6 million in Y2
$7 million in Y1 and $7 million in Y2. Cap per taxpayers increased to $45k and $60k (with Va university)
Angel Investor Tax Credit
The Governor’s proposed budget increases funding for angel investor tax credit from $5 million to $9 million per year.
In both house and senate legislation authorizing increase over $5 million per year was put aside till next year.
$5 million in Y1 and $5 million in Y2 with no bio set aside.
VBHRC (the “Catalyst”)
The Governor’s proposed budget increases funding for the year from $2.5 million to $7.5 million ($2.5 million for research tools) and for year two total funding $10 million ($2.5 million for research tools)
This budget item has not been taken up by house appropriation committee and senate finance committee.
$2.5 million in Y1 and $5 million in Y2.
CHRB directed to use $2.5 million of its funding on collaborative research projects with VBHRC on health with high likelihood of new company and job creation.
Higher Education Research Initiative
The Governor’s proposed budget introduces $50 million bonds and $20 million general for each of 2 years. These funds are to be used in support of impacting research recruitment and the seeding of commercial centers of excellence.
All funds were zeroed out of budget. Similar programs are under construction in Chairman Jones HB 1343 under name Virginia Research Development and Commercialization Fund.
It appears these programs will survive in conjunction with “Go Virginia” Initiative SB 449 and SB 459. This is still under active development.
In Senate, $12 million GF, $25 million bond in Y1. $18.5 million GF, $40 million bond in Y2 (limit $4M/yr expended).
In House, $40 million GF, $20 million bond conditioned upon enactment of HB 1343
Virginia Research Investment Fund (V-RIF) and Committee (V-RIC) established: (i) recruitment and (ii) centers of excellence with economic development as goal; structure, process established; not more than $4 million expended per year from Fund grants or loans; matches required $8 million from General Fund in Y1 and $20 million from General Fund in Y2. Plus $57.5 million from bonds, with set asides.
$29 million for V-RIF for general use
$20 million Inova project
$8.5 million UVA Center for Therapeutics
Biotech Spin-Off Fund
The Governor’s proposed budget includes $60 million over 2 years to seed late stage biotech spin offs from global biopharmaceutical companies in a competitive process.
All funds are removed from the budget this program may be folded into HB 1343.
All funds removed in both Senate and House.
HB 1113 was reported to full committee for hearing on Feb 11, 2016.
SB 487 was considered by education and health committee and continued to 2017
To see a current list of Virginia Bioscience Caucus Members, click here.