Tax

Credit

Job Creation Tax Credits

Working with state and federal economic development partners, business owners on Maryland’s Coast have access to targeted incentive programs to start or expand in Worcester County. From farming and fishing to manufacturing, cybersecurity and the arts, these programs incentivize job creation, innovation and expansion.

Maryland provides a $3,000 tax credit per eligible job, and $5,000 if in a revitalization area, for businesses that create new jobs to encourage businesses expanding or relocating to Maryland. The credit earned by a qualified business entity may not exceed $1 million per credit year. The business must create 60 new, full-time jobs during a 24-month period. For a business that locates or expands in a Priority Funding Area, the minimum is 25 jobs. Outside of a Priority Funding Area, the requirement may be reduced to as few as 30 jobs if the aggregate annual salary for new employees exceeds $2.85 million for 2009. All positions must be filled for 12 months.

If the credit is more than the tax liability, the unused credit may be carried forward for 5 years following the credit year. The credit may be recaptured if the business experiences job losses. Find out more here

State of Maryland Financing & Tax Credit Programs

Biotechnology Investment Incentive Tax Credit

Provides income tax credits equal to 50% of an eligible investment for investors in Qualified Maryland Biotechnology Companies. Program offers incentives for investment in seed and early stage, biotech companies, up to $250,000.

Jason Sobel 410-767-4980 email

Maryland Research and Development Tax Credit

Provides a refundable tax credit to Maryland businesses with qualified research and development expenses. There are two types of credits: Growth and Basic. The tax credit is refundable regardless of whether the company has a tax liability.

One Maryland Tax Credit

Businesses that invest in an economic development project in Worcester County and create new full-time jobs may qualify for up to $5 million in state income tax credits. Eligible expenses include those related to the cost of acquiring, constructing, rehabilitating, installing, and equipping an economic development project. It also includes costs related to moving a business from outside Maryland and the costs to furnish and equip the new location. Interested businesses are required to declare intent to seek certification for this credit prior to claiming any expenses incurred or jobs created.

Jason Sobel 410-767-4980 email

Enterprise Zone

Businesses locating within an Enterprise Zone may be eligible for a ten-year real property tax credit against local real property taxes on a portion of real property improvements. The zone also offers a one-time $1,000 state income tax credit for each qualified new employee.

Abigail McKnight 410-767-7234 email

More Jobs for Marylanders

Promoting the growth of manufacturing in Maryland, More Jobs for Marylanders provides a refundable State income tax credit (5.75% of the wage per new position), State property tax credit, refund on Sales and Use Tax, and waiver of SDAT fees for the creation of five or more jobs. The ten-year program requires application, certification, and an accompanying training or post-secondary education program.

Kelly Adams 410-767-6438

Job Creation Tax Credit

Businesses that create a minimum number of new full-time positions may be entitled to state income tax credits of up to $3,000 or $5,000 per job in a "revitalization area." Worcester County requires a minimum of 10 new jobs within a 24-month period and the positions must be filled for 12 months before applying for final certification.

Abigail McKnight 410-767-7234 email

Maryland Economic Development Assistance Authority Fund (MEDAAF)

Provides below-market, fixed-rate direct assistance to growth-industry-sector businesses.

Maryland Industrial Development Financing Authority (R&D)

Insures repayment on percentage of principal and interest for loans made to qualifying businesses by commercial lenders.