Eleven Maryland-based insurance companies recently won an online auction of tax credits that generated $84 million for a program designed to invest in “promising” new in-state companies.
Gov. Martin O’Malley last year created InvestMaryland, implemented through the Venture Fund Authority and the Maryland Department of Business and Economic Development (DBED), to invest in start-up and early stage companies in Maryland.
The online auction of premium tax credits to insurance companies with operations in Maryland generated $84 million for InvestMaryland, more than the goal of $70 million.
The auction attracted more than two dozen insurance companies with operations in Maryland, who bid on the tax credits with a floor of 70 cents on the dollar.
The 11 companies awarded the credits are Agency Insurance, Chubb, GEICO, Hartford Insurance, IWIFWorkers’ Compensation Insurance, Med Mutual, Met Life, NY York Life, Selective and Travelers.
The insurance companies can claim tax credits beginning in 2015.
“GEICO is pleased to work with the State on the InvestMaryland program and participate in today’s successful tax credit auction,” said Mike Campbell, chief financial officer of Chevy Chase, Md.-based GEICO, in a statement. “Our company is in full support of the positive impact that InvestMaryland will have on companies throughout Maryland in terms of job creation, stimulating private investment and moving our innovation economy forward.”
The inaugural round of investments will be made in innovative companies this summer through several private venture capital firms and the Maryland Venture Fund (MVF), according to the DBED.
“Our state is well-positioned to be a leader in the new economy as a global hub of innovation – a leader in science, security, health, discovery and information technology,” O’Malley said.