Business That Create New Jobs Tax Credit

Certain businesses located in Maryland that create new positions or establish or expand business facilities in the state may be entitled to an income tax credit. To be eligible for the credit, businesses must first have been granted a property tax credit by a local government of Maryland for creating the new jobs.

The credit may be taken against corporate income tax, personal income tax or insurance premiums tax. The credit may be applied to only one of these tax types in addition to the property tax.

Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit.

To qualify for the credit

The business must create at least 25 new positions as part of the new or expanded business facility in Maryland (5,000 square feet or more). Businesses located in smaller counties (population of 30,000 or less) must create at least ten new positions.

An enhanced credit is available for businesses that create or expand a new business facility in Maryland of 250,000 square feet or more and:

Employ 2,500 employees and create 500 new positions that pay at least 150 percent of the minimum wage; or
Create 1,250 new positions that are paid at least 150 percent of the minimum wage.

For more information, contact:

State Department of Assessments and Taxation (410)767-1191

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