Gov. Dannel Malloy has signed a bill lawmakers passed earlier this year that encourages more investment in the state's growing bioscience sector.
Malloy on June 14 signed SB 266, which provides a personal income tax exemption for income earned by active managers of venture capital funds.
The bill is one of "the most important, the most consequential, of the economic development bills" that lawmakers considered this year, said CBIA's Paul Pescatello.
Pescatello, executive director of the Connecticut Bioscience Growth Council, said the tax exemption in SB 266 is a powerful incentive for venture capital migration to Connecticut.
"Because biopharma companies require such large investments of capital and time—to bring a new medicine from research concept through FDA approval takes $2.6 billion and 12 years—their venture capital investors tend to require the companies they invest in to be in close proximity to their offices," he said.
Pescatello said two primary factors determine where life research and development and biopharma companies will locate.
The first is the quality of the basic life sciences research of local research institutions and universities.
Connecticut has several leading life sciences research institutions, including Yale University, the University of Connecticut, and The Jackson Laboratory for Genomic Medicine.
The second is access to venture capital, which this bill addresses.
Connecticut is becoming a leading state for the biosciences, as the presence of 22 Connecticut pharmaceutical companies, research labs, and support organizations at the recent Biotechnology Innovation Organization convention in Boston showed.