Posted on: Friday, May 13, 2005

EDITORIAL
Biotech tax incentives good long-term move

The award of federal tax credits to a life-sciences research center is an important first step toward bringing a promising new industry to Kaka'ako.

Biotech Research Center LLC, an association of local business interests, has secured $11 million in federal tax credits that should help lure other financing for the center, which will cost an estimated $150 million to build. Developing our high-tech industry moves us further down the road in diversifying the economy, precisely what Hawai'i needs.

Under the New Markets Tax Credit program, investors who spend $28 million financing the project can claim a 39 percent, or $11 million, federal tax credit on their investment.

Solid backing from investors can enable the life-sciences research center to offer more affordable leasable space to startup companies, which would capitalize on medical/healthcare research that the University of Hawai'i medical school will shepherd.

Any move that helps to quicken the pace of Kaka'ako development should generate excitement. Others should show as much resourcefulness for their own projects in this growing community.