New Markets Tax Credits and the TNInvestco selection are expected to have a direct impact on both the continued development of the UT-Baptist Research Park and the ability to bring entrepreneurs into the park.

Federal and State Programs Signify Expanding Respect and Confidence in Memphis Bioworks

The Memphis Bioworks Foundation is focused on bringing investments and opportunities into the Memphis market. Investments can take the form of direct project funding, grants, infrastructure or corporate expansion and development. Late October and early November saw two major victories.

First came news that Memphis Bioworks Foundation and the City of Memphis had received an allocation of $30 million in New Markets Tax Credits in the latest round announced at the end of October. In the joint application with the City, Memphis Bioworks received the credits to be deployed on projects in the Memphis area to stimulate private investment in designated low-income census tracts.

The UT-Baptist Research Park site, including the former hotel tower site on Madison and the planned research buildings, were identified as tracts for investment. The tax credits are the largest ever received through this program by a Tennessee-based institution. The New Markets Tax Credit Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs).

A for-profit CDE subsidiary of Memphis Bioworks Foundation will work with the City to jointly make decisions on how best to deploy the $30 million in credits to stimulate investment that leads to new business opportunities and jobs in the medical district and downtown Memphis.

Robert Lipscomb, Director Housing & Community Development for the City of Memphis, stated, “With the Memphis Bioworks Foundation’s knowledge and experience in helping build businesses through an integrated focus on infrastructure, education and entrepreneurship, we have a partner that clearly understands how viable businesses are built and jobs created.”

In early November, Innova Fund II LP learned that it has been awarded TNInvestco status and $20 million in tax credits by the Tennessee Department of Economic and Community Development. A total of six TNInvestcos were authorized to invest funds in qualifying Tennessee start-up and small businesses. Innova is the only organization in West Tennessee to be awarded tax credits through this program.

“We look forward to our role in helping to identify and lead investment rounds for high-potential business opportunities, to advise and mentor entrepreneurs, and to facilitate follow-on investments,” said Ken Woody, president of Innova Memphis, Inc. Previous investments made by Innova have attracted $3 of capital for every $1 invested by Innova.

Memphis Bioworks and Innova are able to provide entrepreneurs with access to incubator facilities, training and mentoring, industry networks and seasoned executives. Since Innova was first funded under the MemphisED Initiative of Memphis Fast Forward, the company has screened more than 200 potential business investments, and has made seven promising investments in the Memphis area.