Innovate In PAInnovate in PA is a creative and innovative program designed to invest in high-potential small businesses that are drivers of job creation, wealth creation and innovation development.
Established by Act 52 in 2013, enables the Department of Community & Economic Development to sell up to $100 million of insurance premium tax credits to qualified insurance companies and deploy the revenues generated by the sale to the Department’s strategic partners including the four regional Ben Franklin Technology Partners, the state’s three Life Sciences Greenhouses and the Ben Franklin Technology Development Authority’s (BFTDA) Venture Investment Program.
By using the proceeds of the sale of the insurance premium tax credits, the Department’s Office of Technology & Innovation will deploy much needed capital to Pennsylvania’s technology-enabled businesses using the aforementioned strategic partners and the Venture Investment Program. The Venture Investment Program provides a loan to qualified venture capital firms who make investments in Pennsylvania companies.
Capital Generated Through the Program
On July 15, 2015, Atex Petros, a third party broker secured by the Department, conducted the sale of $100 million of deferred insurance premium tax credits (tax credits) to 29 qualified buyers. A qualified buyer is an insurance company that is authorized to do business in Pennsylvania.
The tax credits were sold for 87 cents on the dollar. The Department received the first of six payments on July 15, 2015 in the amount of $12,949,105.30. Subsequent payments will be made in accordance with a previously determined payment schedule. The total amount to be received at the Department and subsequently deployed to the legislatively mandated partners and/or the Venture Investment Program is $85,449,105.30.
To learn more about each of the programs that will distribute these funds and see if you’re eligible to apply, visit the program pages below: