Eight biotech companies in Alabama have received a total of $2.7 million in funding through the state’s new Innovate Alabama Tax Credit program. Southern Research, a non-profit research organization focusing on green energy and medical advancements, announced the awards, stating that the investments are expected to create two dozen high-paying jobs in the state.
The Therapeutics Development Fund, launched by Southern Research with nearly $3 million from the tax credit program, aims to enhance the biotech industry in Alabama by supporting innovators already in the state and those willing to relocate. CEO Josh Carpenter emphasized the organization’s commitment to leveraging its expertise to support startups in Birmingham’s biotechnology ecosystem.
The tax credit program was created by the Legislature and Gov. Kay Ivey as part of their economic development strategy. Donors with Alabama tax liabilities contribute to the fund and receive a 50% offset on their income, financial institution excise, insurance premium, or utility license taxes.
The Therapeutics Development Fund is designed to attract biotech firms to Alabama and provide resources, such as wet lab space, to in-state startup companies. Another $3 million will be awarded later in the year to support additional existing companies and new ventures in 2024 and 2025.
The recent awardees include companies like Yuva Biosciences, SCORE Pharmaceuticals, and Diamond Therapeutics. These investments are expected to bolster the biotech industry in Alabama and drive economic growth in the state.
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