Gov. Martin O’Malley wants to multiply Maryland’s investment in biotech and life sciences startups with $100 million he expects to pool from insurance companies in return for tax breaks.
“One of the many effects of the national recession is the drying up of venture capital,” O’Malley told a group of business leaders at the 2010 State of Tech in the I-270 Corridor conference. “We cannot become a venture capital bank, but we can… push back.”
O’Malley’s initiative, named InvestMaryland, would offer insurance companies such as Geico, AllState and State Farm tax credits in 2015 if they expedite payment of a portion of their state taxes. The plan aims to generate $100 million for the state’s $2 million venture capital fund over the next five years.
InvestMaryland requires approval by the state legislature, which convenes in January 2011.
O’Malley is running for reelection against former governor Bob Ehrlich, who says cutting taxes — not increasing investments — is the way to grow jobs in the state.
