Virginia gubernatorial candidate Terry McAuliffe supports commercializing Virginia’s research to help more researchers bring their technologies to market and encourage the growth of more innovative businesses in the Commonwealth. McAuliffe will discuss his policy with Virginia Commonwealth University (VCU) students this afternoon during a visit to former Gov. Doug Wilder’s class.
“We need to make it easier for our scientists and researchers to transition their technologies into successful businesses so we can continue to compete in a global economy and make Virginia again the best state for business,” said McAuliffe.
McAuliffe’s policy proposals include doubling the limit for investment tax credits on commercialization from $5 million to $10 million and raising the individual company limit on the R&D tax credit in the Commonwealth.
Commercializing Virginia’s Research
Virginia’s world-renowned network of research universities, industries, and institutions is an incomparable driver of economic activity. However, we need to do more to help bring the new developments in technology, energy, and life sciences to market. The transition from proof of concept to successful business is fraught with uncertainty and it is often difficult to acquire capital during this phase. Helping jump start this aspect of commercialization of Virginia’s research will grow our economy and create jobs.
To assist with commercialization and encourage the growth of new and innovative companies here in Virginia, Terry McAuliffe proposes:
1. Increase the current limit on investment tax credits for commercialization. The “Angel Investor Tax Credit” is a program that rewards investment in companies that commercialize research from institutions of higher education. The current cap of $5 million on this credit should be doubled to $10 million.
a. Target three key sectors of research. While avoiding fixed carve-outs, Terry’s administration will set a clear goal ensuring the following industries benefit generally equally from these increases:
i. Biotechnology
ii. Technology
iii. Energy
2. Raise the limit on the Research & Development tax credit. The R&D tax credit, patroned by Senator Herring and signed into law by Governor McDonnell, incentivizes Virginia businesses to invest in research and development. However, the per-company cap on this credit is too small to appropriately incentivize our most innovative research companies. Terry’s administration will encourage the General Assembly to double this cap from $25,050 to $50,100 for regular R&D and from $30,000 to $60,000 for partnerships with Virginia colleges and universities.
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