Tax credit program awards $2.7 million aimed at boosting jobs in Alabama’s biotech industry

Published 11:31 am Tuesday, July 2, 2024

Eight biotech companies have been awarded a combined $2.7 million through a new state tax credit program, aiming to boost job creation in the industry.

Southern Research, a non-profit focused on green energy and medical advancements, announced the awards, expecting the initial investments to generate approximately two dozen high-paying jobs in the state. Southern Research itself received nearly $3 million through the 2023 Innovate Alabama Tax Credit to establish its Therapeutics Development Fund.

“The Therapeutics Development Fund is playing a critical role in our effort to enhance the biotech industry in Alabama by supporting innovators who are already here and those who are willing to move here,” stated Josh Carpenter, CEO of Southern Research. “We are excited to leverage our 80 years of experience and expertise to support startups who want to advance their programs in Birmingham’s rich biotechnology ecosystem.”

The Innovate Alabama Tax Credit, part of the Legislature and Gov. Kay Ivey’s larger “Game Plan” for economic development, enables donors with Alabama tax liabilities to contribute to the grant program in exchange for up to 50% offsets on their income, financial institution excise, insurance premium, or utility license taxes.

The Therapeutics Development Fund aims to attract biotech firms to Alabama and provide in-state startups with essential resources, including wet lab space, to ensure they remain in the state.

A second tranche of more than $3 million will be awarded later in the year to support additional existing companies and new ventures through 2024 and into 2025.

The eight recent awardees are: Yuva Biosciences in Birmingham; SCORE Pharmaceuticals in Huntsville and Birmingham; Southern Biological Solutions in Birmingham; Celestia Diagnostics in Birmingham; Diamond Therapeutics, a Canadian company with a Birmingham subsidiary; Metaclipse Therapeutics, an Atlanta company planning a Birmingham location; and virtual companies DomainOne and CorriXR Therapeutics.