One Maryland Economic Development Tax Credit

Certain businesses that establish or expand a business facility in a priority funding area or as part of a project approved by the Board of Public Works, and that are located in a "distressed" Maryland county, may be entitled to a tax credit for cost related to the new or expanded facility. A "distressed" county has an average rate of unemployment that is 150 percent higher than the statewide average or an average per-capita personal income that is equal to or less than 67 percent of the statewide average.

The credit may be taken against corporate income tax, personal income tax, or insurance premiums tax. The same credit may not, however, be applied to more than one tax type.

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 notify the Department of Business and Economic Development of its intent to seek certification before either new employees are hired to fill qualified new positions or eligible costs are incurred.

The business must, over the two-year period, create at least 25 postions at the new or expanded business facility that are:

Full-time;
Of indefinate duration;
Paid at least 150 percent of the federal minimum wage; and
Filled.

To qualify for the project tax credit, the business must also spend at least $500,000 in project costs on the project. No minimum expenditure is required for the "start-up" tax credit. The business must also submit a copy of the certification from the Department of Business and Economic Development with the tax return.

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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