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The Montgomery County Council created a tax credit Tuesday for biotechnology companies, but council members say they are unsure whether the county has enough money to provide the tax credits now.

Councilman Michael J. Knapp (D-Dist. 2) of Germantown, who sponsored the legislation creating the tax credit, said now that the legislation has been approved, the council could consider funding it this year or when the budget situation improves.

The council is expected to take up Montgomery County Executive Isiah Leggett's (D) proposed fiscal 2011 budget in the next few weeks.

The bill calls for $2 million in tax credits for investments in Montgomery County biotechs. The credit would supplement the state's similar tax credit.

The county would have flexibility in how much the credit would be.

Knapp said Tuesday that adding to the state's tax credit will motivate companies that are moving out of the county to stay in Montgomery County — or locate here.

Tuesday's vote was 7-2 with council members Philip M. Andrews (D-Dist. 3) of Gaithersburg and Marc Elrich (D-At large) of Takoma Park opposed.

The legislation makes Montgomery County the nation's only local jurisdiction to provide a biotechnology tax credit, according to a county statement.

It was a recommendation of the county's Biosciences Task Force, which formed in 2008.

Elrich said Tuesday that perhaps the council should consider offering the tax credit to companies that are not already receiving the state credit.

"This money would be more valuable [if it went to] those firms that got nothing," Elrich said. "Not those that already got a credit from the state."

Andrews said he was opposed to the credit because the county does not have the money to fund it.

However, Councilwoman Nancy Navarro (D-Dist. 4) of Silver Spring said the credit is one way the county can begin to expand the county's tax base and generate more revenue.

"I think that is not a panacea, but it's a step in the right direction," she said.