August 8, 2005

ROMNEY ASKS COMPANIES TO SIGN UP FOR JOBS INCENTIVE PROGRAM

Says program will help nurture fledgling life sciences sector

As the Legislature debates ways to further stimulate the Massachusetts economy, Governor Mitt Romney today urged life sciences and medical device manufacturing companies to apply for the Jobs Incentive Payment (JIP) program that was part of the last economic stimulus bill.

The manufacturing tax credit is designed for life sciences and medical device manufacturing firms. The program was passed as part of Romney’s first economic stimulus package in 2003. The credit became available in January 2005 for employees hired during 2004.

To date, three companies have applied for the tax credit. Together, these three companies – Agencourt Bioscience of Beverly, Holyoke-based Marox and Hyaluron of Burlington - have together created 38 qualifying jobs with an average salary of more than $32,000.

Right now, there are roughly 22,000 life sciences manufacturing jobs in Massachusetts. While relatively small, Romney said, “As a state, our long-term economic health depends on the expansion of the life sciences job sector. We’d like to give companies in this sector another reason to grow in Massachusetts.”

“Our challenge now is to start spreading the news. The manufacturing tax credit is good for cutting edge companies, good for job seekers and great for Massachusetts,” Romney said.

Under the program, companies that create 10 or more jobs in Massachusetts during a calendar year receive a cash payment equal to half the income tax rate for the salaries paid to the newly hired workers. The incentive is paid out over 3 years provided companies maintain an employment level at least equal to the application year.

“The life sciences manufacturing tax credit has gained much-deserved national attention as an innovative economic program,” said Peter Larkin, chief operating officer and senior vice president of the Massachusetts Biotechnology Council. “Since the JIP program clearly boosts our state’s competitiveness, it’s our task to make sure more companies know about this benefit to take advantage of it.”

The state Department of Revenue has budgeted $1 million for the JIP program in the first year and $2 million annually in the following years.

“Hyaluron is a fast growing life sciences manufacturing firm that has been able to take advantage of the talent in Massachusetts,” said Shawn Kinney, president of Hyaluron. “We appreciate the state’s efforts to help us grow and add jobs and Hyaluron encourages other firms to take advantage of this innovative tax rebate program.”

Companies that are interested in taking advantage of the Job Incentive Payment program should contact the Department of Revenue at 617-626-3306 or visit http://www.dor.state.ma.us.

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