Tax credit program could spark new private investment - Tampa Bay Business Journal:

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The program, New Markets Tax Credit, is designedd to stimulate economic development and job creationin low-incomew communities by attracting investment capital from the private On Oct. 5, the allocatee $930 million in tax credits to 11 organizations that have createc community development entities and identified Floridq as among the areas nationally they wantto serve. The 2007 allocationd were the fifth round of funding for the which permits individual and corporat taxpayers to receive a credit against federal incomer taxes for investingin CDEs. Since its the program has allocated $16 billiohn in tax credits.
"It's a way to get the privatw sector to invest in projectsx thatotherwise aren't done because they are viewed as too said Bill Luecht, a spokesman for the , whichy administers the program. None of the CDEs receiving 2007 allocations for tax credit s were basedin Florida, but many have strong ties to the state and the Tampa Bay including CDEs associated with the area'se biggest banks. To date, the Orlando-based is the only community developmentf entity headquartered in the state to be allocateds New MarketsTax Credits. in Tampza wants to follow in its footsteps.
, a wholly ownec subsidiary of Accentia ( : ABPI), got the go-ahead to apply for New Market s Tax Credits after receiving noticer from the Treasury Department that has qualifie asa CDE. Another Accentia subsidiary, Biovest International (OTCB: attracted $19 million from the progran to build a manufacturing plantin St. Louisa last year. Biovest was awardede New Markets Tax Credits bythe ; then Minneapolis-basefd ( : USB) purchased the credits. The St. Louiss plant manufactures cell cultureequipment that's used to produced BiovaxID, a personalized cancer vaccine to treat patient s with non-Hodgkin's lymphoma.
Biovest is analyzing data from the final stagez of clinical testingfor BiovaxID, said Susan Bonitz, director of program coordinatio n at Accentia. The analysis has to be done before Biovestg decides where to locatde a commercial manufacturing facility provided the vaccins winsregulatory approval. The Universityh of South Florida included plans foran $80 million Biovest facility when it won $8 million in statse funding for a in Biomolecular Identification and Targeted Rod Casto, executive director of the , said he talkesd with Biovest officials in June, after the company cleared a majo r regulatory hurdle.
"We've been patienr with them, understanding their priorities changed becaused ofthat success, and we were assured they are still intending to be part of the Center of Excellence," Casto said. "They just neededx to put their nose to the grindstone on thoseclinicalo trials."