Businesses that incur qualified research and development expenses in Maryland may be entitled to tax credits. The total of research and development credits for all businesses may not exceed $6 million per year. This credit may also be carried over for up to seven years.

This credit is available for tax years beginning after December 31, 1999, but before January 1, 2011.

The credit may be taken against corporate income tax or personal income 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 invest in research and development activities in Maryland during the tax year. The business must also submit an application for the credit to the Maryland Department of Business and Economic Development by September 15 of the year following the tax year in which the expenses were incurred. The Maryland Department of Business and Economic Development will vertify the amount of credit available to the business by December 15.

For More Information, Contact:

Maryland Department of Business and Economic Development

Division of Business Development, Tax Incentives Group

(410)767-6438 or (410)767-4980

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