SACRAMENTO – Assemblymember Mary Hayashi (D-Hayward) today announced that AB 1370, a bill she jointed authored with Speaker Pro Tem Sally Lieber (D – Mountain View) and Assemblymember Gene Mullin (D – S. San Francisco), has successfully passed the Assembly with a bipartisan vote of 79 to 0.  This legislation extends the deadline for biotechnology companies to use Net Operating Loss Credits. 

“One third of all U.S. life-science work is found in Northern California” stated Hayashi.  “We must support the biotechnology industry to ensure that California stays competitive with other states and foreign countries.” 

Current California law allows biotechnology companies to carry forward losses for 10 years.  The product cycle of biotechnology is lengthy and costly.  Biotechnology companies, on average, invest $400 million in the first 15 years developing their products.  In year 11 biotechnology companies are left with losses that are now unusable.  This large financial burden will handicap companies that have worked hard and invested millions to bring a product to the market. AB 1370 will extend the deadline for net operating loss credits from 10 to 20 years.  

Encouraging ongoing investments in medical science will provide important revenue support to developing biotechnology companies creating incentives for biotechnology companies to continue doing business in California.  “Historically California has been the leader in biotechnology” said Hayashi “and it is important that we protect our economy and jobs.” 

Hayashi serves the 18th Assembly District, which includes Dublin, Hayward and San Leandro; all of the unincorporated areas of Ashland, Cherryland and San Lorenzo; most of Castro Valley, Pleasanton and Sunol; as well as a portion of Oakland.