Businesses located in a Maryland enterprise zone may be entitled to a tax credit for wages paid to newly hired employees. The local enterprise zone administrator must certify the business to qualify for the credit.

The credit may be taken against corporate income tax or personal income tax.

Sole preprietorships, corporations, tax-exempt non-profit organizations, limited liability companies and business trusts may claim the tax credit.

To Qualify For The Credit:

The business must hire at least one employee who:

• Is a new employee or an employee rehired after being laid off for more than one year;
• Worked for the business for at least 35 hours per week for six months or more;
• Earns at least 150 percent of the federal minimum wage;
• Spends at least 50 percent of the workday either in the enterprise zone or on activities of the business resulting from its location in the enterprise zone or focus area;
• Is hired after the date the enterprise zone was created or the date the business located in the enterprise zone or focus area, whichever is later;and
• Is not hired to replace an individual employed by the business within the last four years.

If the individual is economically disadvantaged, the business must obtain certification from the Maryland Department of Labor, Licensing and Regulation.

For More Information, Contact:

Maryland Department of Business and Economic Development

Division of Business Development, Tax Incentives Group

(410)767-6468 or (410)767-4980

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