Holt Meets with NJ Biotechnology Leaders to Talk Small Business Job Creation, Tax Relief

Press Release

U.S. Rep. Rush Holt (NJ-12) met with leaders of New Jersey's biotechnology industry at Princeton-based Soligenix, Inc. to discuss the important role biotechnology plays in New Jersey's economy and to highlight his first pieces of legislation of the 112th Congress, a package that would help foster job creation and provide tax relief to small businesses.

"My first priority in the new year and the new Congress remains helping to foster job creation and supporting middle class families," Holt said. "On the first day of Congress I introduced a series of bills that would provide tax relief to businesses struggling in this economy and invest in the innovation that leads to long-term economic growth and jobs that can't be sent overseas."

"Congressman Holt has introduced two important bills into the current session of Congress that promote innovation and the jobs it brings," said Debbie Hart, President of BioNJ. "We have seen how programs like these can work at the state level in New Jersey with the Technology Business Tax Certificate Transfer Program which BioNJ conceived of and advocated for. Since its inception in 1998, the program has helped NJ's biotech industry grow from 80 companies in the late 1990s to more than 300 today because it allows start-up and early-stage companies to sell their tax losses for much needed cash," Hart said.

"Just this last year we directly benefited from the New Jersey program off of which Rep. Holt's R&D tax credit legislation is modeled," said Soligenix President and CEO Chris Schaber. "This program has allowed Soligenix to not only move our programs forward, but it has allowed us grow our company. Along with New Jersey's deep biotech talent pool, this program was one of the important drivers for our move here from Florida more than three years ago," said Schaber.

"Fostering an environment that values innovation and allows start-up high-tech businesses to thrive is imperative for New Jersey's economy," Holt said. "These three bills are not only critical for New Jersey's economy. They would help invigorate investment in private sector innovation so that we can expand our global leadership in high technology, spur greater economic growth domestically, and remain a leader in technological innovation."

Holt introduced the following legislation:

The "Creating Jobs From Innovative Small Businesses Act of 2010" - to encourage small business investment by establishing a temporary 20 percent tax credit for investments in research-intensive small businesses. The credit would be targeted -- only start-up small businesses who invest 50 percent of their budget in research would be eligible. This legislation builds on a successful state initiative in New Jersey and 17 other states.

The "Create Jobs by Expanding the R&D Tax Credit Act" -- to help businesses by strengthening the research and development (R&D) tax credit, which allows businesses to invest in innovation and, in the process, expand and hire new workers. Holt's legislation temporarily would boost the most common form of the federal R&D tax credit, which would create 162,000 jobs in the short-term and increase the GDP by $90 billion, according to the Information Technology and Innovation Foundation. In addition, Holt's legislation also would make the credit more useful for start-up businesses by allowing them to sell their unused tax credit, modeled after a successful New Jersey program.

Another bill would make permanent the R&D tax credit, which studies show returns two dollars in private research investment for every dollar spent. The credit has never been made permanent, creating uncertainty among many research-intensive businesses.

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