DCED Announces Next Phase of Innovate in PA Tax Credit Program

HARRISBURG, Pa., Oct. 15, 2014 /PRNewswire-USNewswire/ -- Department of Community and Economic Development (DCED) Secretary C. Alan Walker today announced the Innovate in PA program has moved forward with the selection of Atex Petros Holdings, LLC to sell $100 million in insurance premiums tax credits; the sale of these tax credits will generate revenue for programs and initiative that support Pennsylvania's entrepreneurs and start-up businesses.

"The Corbett Administration continues to press forward to implement the Innovate in PA program to help innovative entrepreneurs and start-up companies develop and accelerate high-wage job growth," Sec. Walker said. "The Innovate in PA program builds a solid foundation to ensure that Pennsylvania's creative and innovative entrepreneurs stay and thrive in the keystone state."

Signed into law by Governor Tom Corbett in 2013, Innovate in PA will inject funds into the highly successful Ben Franklin Technology Development Authority (BFTDA) for deployment to its award winning Ben Franklin Technology Partners (BFTP) and its successful Venture Capital (VC) Investment Program as well as Pennsylvania's three Life Sciences Greenhouses (LSGs). The impact of the Innovate in PA program is projected to create more than 5,350 new technology industry and related jobs, and more than double the return-on-investment back to the state. For every dollar invested in early-stage businesses through Innovate in PA, it is projected that $2.37 will be returned to the state in additional tax revenue.

Gov. Corbett officially launched the program in September 2013 in Pittsburgh at Innovation Works' AlphaLab, a leading business startup facility founded in 2008 that has been recognized as one of the nation's best startup business incubators. The governor met with CEOs and employees from some of the startups that have received Innovation Works support including Hability, Aethon, The Resumator, 4Moms, ALung, ActivAided Orthotics, Cognition Therapeutics, Digital DreamLabs, Shoefitr and Precision Therapeutics.

In Oct. 2013, Gov. Corbett met with CEOs and employees from some of the start-ups that have received support from the BFTP of Southeastern PA.  Companies included: S4W Worldwide; InfraScan, Inc.; Optofluidics; Bioconnect Systems; Core Solutions and Chandler Bats.

In November 2013, DCED announced a process to solicit proposals from financial services companies to sell the deferred insurance premium tax credits, offered to insurance companies who are authorized to do business in the state. DCED has secured Atex Petros Holdings, LLC, a full service financial consultant who will market and sell the tax credits to qualified purchasers, with a primary objective of maximizing the net revenue yield to the BFTDA for deployment to the BFTP and VC Investment Program, as well as the LSGs.  

For more information visit: http://newpa.com/business/innovate-in-pa.

Media contact: Steve Kratz, DCED; 717-783-1132

SOURCE Pennsylvania Department of Community & Economic Development