NVTC Priority Budget Amendments to Support Research, Angel Investor Tax Credits and Cybersecurity and Modeling and Simulation Programs Approved By Legislature
On Monday, May 14, the General Assembly met in Richmond to vote on $43.9 million in budget amendments submitted by Gov. Bob McDonnell to the $85 billion two-year budget approved by the legislature last month. Three of the budget amendments approved by the legislature were submitted by the governor following a discussion with NVTC. These three amendments were priorities for NVTC and they collectively allocate an additional $6 million to ensure technology innovation remains a top job creation and competitiveness priority in the Commonwealth. Specifically these amendments:
- Boost funding for the Commonwealth Research Commercialization Fund (CRCF) from $13 million to $16 million over the biennium, continuing Virginia’s commitment to enhance the reach and effectiveness of these programs to facilitate the overall growth and development of the technology industry in the Commonwealth. Of this amount, $8 million per year will be deployed to accelerate entrance of new products and services to the market, incentivize collaboration between institutions of higher education and companies engaged in research in high-growth, emerging industries, match federal SBIR grants for Virginia companies and invest through the CIT GAP Funds in seed-stage firms and university spin-outs with a high potential for successful commercialization, rapid growth and downstream private equity financing.
- Provide $2 million in funding over the next two years to launch a new cybersecurity initiative and a new modeling and simulation initiative. The cybersecurity initiative will advance Virginia’s leadership in growing jobs, investment, expertise and innovative solutions to address this critical national priority. In addition, Virginia ranks among the top three states in modeling and simulation and the modeling and simulation program will build upon existing initiatives by fostering innovative partnerships in Virginia, leveraging university and industry resources, and aligning assets with emerging and expanding outreach activities. Together, these two initiatives will provide a focused effort on further growing Virginia jobs and investment in these industry sectors.
- Adjust the annual cap on Virginia’s Angel Investor Tax Credit (Qualified Equity and Subordinated Debt Investments Tax Credit) from $3 million to $4 million to ensure there is enough funding to encourage continued investment in early-stage technology startups in the Commonwealth.
The 2013-2014 budget already incorporated other NVTC priorities and items of interest to NVTC members including:
- $5 million in annual funding for Virginia’s refundable research and development (R&D) tax credit.
- $3 million over the biennium for an IT Academy to help grow Virginia's science, technology, engineering and mathematics (STEM) workforce through a formal online curriculum that prepares students to pass Microsoft industry certification exams. Through a statewide agreement, this curriculum has been made available to every high school student, their parents and all high school faculty and staff. The funding will provide for a statewide license from a third party provider for certification examinations.
- $1 million in funding over the biennium to expand the Northern Virginia Community College’s SySTEMic Solutions workforce program beyond Prince William County/Manassas to include Fairfax, Loudoun, Arlington and Alexandria. SySTEMic Solutions is a collaborative arrangement among school divisions, higher education institutions and employers to develop a sustainable STEM workforce pipeline.
- $200,000 to support the development of a feasibility plan focused on establishing a science, technology, engineering and applied mathematics (STEAM) residential school in Virginia.
- An additional $73,400 in 2013 for the Thomas Jefferson High School for Science and Technology Governor's School to provide state funding for an additional 50 students.
To review NVTC’s policy successes during the 60-day session that concluded on March 10, click here.