A 60 percent state tax credit on a University donation? Not bad.
Actually, it’s unprecedented. Donations qualifying for the income tax credit, which is awarded at the tax year’s end, are those given to one of the eight Oregon University System institutions – including OHSU – for commercial development research.
“Really what this represents for the University of Oregon is a manifestation of state support in the form of these tax credits to encourage private sector donations to our University,” said Don Gerhart, associate vice president of research and innovation. “For us, effectively it represents a potential source of funding to support research and innovation programs here on campus.”
The Oregon Senate wrote the bill in 2005, but it was missing certain required rules and language. The writers amended the bill during the last biennium, and Gov. Ted Kulongoski signed it into law in 2007.
The University created The University Venture Development Fund after the state issued the tax credit. Each OUS institution has its own fund, but each is responsible for the direction of donations.
“The U of O plans to use these funds to expand the innovation and entrepreneurship programs in business and also engage the School of Law,” Gerhart said.
The fund contributes to the cost of marketing University developments to the community. The University calls it “moving commercially viable research from lab to market.”
“It creates all kinds of opportunities for students to gain hands-on experience around bringing research into the marketplace,” said Randy Swangard, managing director of the Lundquist Center for Entrepreneurship. “Getting the knowledge base out of the University and into the public arena where it can do a lot of good is of tremendous value, and we can place students in the middle of that development process.”
Swangard and Gerhart are both key players on the fund’s leadership team. Another is Rich Linton, vice president for research and graduate studies. Linton supported the Senate legislation and is heavily involved with the OUS Research Council and Oregon Innovation Council, two organizations that supported the bill.
Linton said he is committed to increasing resources to assist University faculty and staff in moving their research and discoveries into the marketplace, a transition that many fail to complete.
“The University Venture Fund provides an important new funding vehicle to help sustain and grow the UO’s technology transfer and entrepreneurial activities,” Linton said. “The UVF will advance the University’s efforts, specifically through support of UO’s entrepreneurship programs, proof-of-concept research grants, and very early stage investment in University-derived companies.”
The fund will support law, business and entrepreneurial students at the University. Swangard said it adds two important benefits for students concentrating on marketing ideas: It helps them turn an idea into a market-ready application, and provides a funding pool to assist students.
The state awarded each public university $14 million in tax credit-eligible gifts. The tax credit will be awarded to donors on a first-come, first-serve basis.
“I am confident that the incentives provided by the 60 percent tax credit under the UDF will stimulate additional private investment in UO innovation,” Linton said. “In short, ‘something ventured, something gained’ for the UO and for Oregon in the years to come.”
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