New Jersey Lawmaker Proposes Bill To Encourage Private Investors To Fund Stem Cell Research

Main Category: Stem Cell Research
Also Included In: Women's Health / Gynecology
Article Date: 09 Jul 2008 - 5:00 PDT

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New Jersey Rep. Neil Cohen (D) recently proposed legislation designed to encourage private investors to provide funding for stem cell research loans in the state, the AP/Long Island Newsday reports. Under the bill, private investors would be allowed to contribute up to $500 million over five years to the state Economic Development Authority, which would provide $100 million in annual research loans for adult and umbilical cord stem cells. In addition, investors would receive tax credits equal to their contribution to the fund if a research project failed to repay the loan, but the credits would not exceed $100 million annually. The bill has not yet been debated in the Assembly, the AP/Newsday reports. Cohen said the bill would reinvigorate the state's stem cell research efforts and allow it to promote research without using public funds.

According to the AP/Newsday, Cohen was a leading supporter of a referendum that would have allowed the state to borrow $450 million to fund stem cell research; however, state voters defeated the initiative in November. "Investing in stem cell research is one of the single most important activities New Jersey can be engaged in," Cohen said. He added that he plans to meet with investment banks to discuss the bill in the coming weeks. According to the AP/Newsday, the plan already has drawn interest from NW Financial Group. Michael Hanley, the firm's managing director, said the bill would allow the company to compete with others to attract biotech jobs. "The stem cell and biotech industries produce high paying jobs that are coveted by states," Hanley said, adding, "It is important for New Jersey's economy to continue to attract growth industries."

Marie Tasy, executive director of New Jersey Right to Life, said, "I'd like to think Assemblyman Cohen has introduced this bill because he is heeding the will of the voters who clearly rejected any attempt to use taxpayer money to fund embryonic stem cell research" (Hester, AP/Long Island Newsday, 7/6).

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