TAX CREDITS

Job Creation Tax Credit (JCTC): Businesses that create at least 60 new jobs may be eligible for a corporate income tax credit equal to 2.5% of the aggregate annual wages of the newly created jobs with a maximum credit of $1,000 per job.  If a business locates in a Priority Funding Area (includes enterprise zones, federal empowerment zones, and county-designated growth areas), the job creation requirement is reduced from 60 to 25 jobs, and the amount of credit is increased to 5% of aggregate annual wages with a maximum credit of $1,500 per job. Credits and non-refundable and non-transferable, however unused credits may be carried forward for up to 5 years. 

One Maryland Tax Credit: Investment tax credit program available for businesses that locate in one of 7 qualified distressed counties.   To qualify, a company must invest a minimum of $500,000 in a business facility and create at least 25 new jobs. Unused credits may be carried forward for up to 14 years.

Research and Development Tax Credit: Provides businesses with R&D tax credits that incur qualified research and development expenses. The Basic R&D tax credit is 3% of eligible R&D expenses that exceed the firm’s average R&D expenses over the last 4 years. The Growth R&D tax credit is 10% of eligible R&D expenses that exceed the firm’s average R&D expenses over the last 4 years. If either of the credits applied for exceed $4.5 million, the business’ respective tax credits will be prorated.

GRANTS & LOANS

Maryland Economic Development Assistance Authority and Fund (MEDAAF): Provides competitive loans and grants to businesses and local jurisdictions through five separate financing capabilities. In particular, major economic development projects may receive loans of up to $10 million dollars while local municipalities may receive up to $5 million in loans or $2 million in conditional loans and grants to assist new or expanding businesses. Projects must be within Priority Funding Areas and eligible industry sectors.

Economic Development Opportunities Fund (Sunny Day):  This discretionary program provides grants and loans to economic development projects that will result in significant capital investment and job creation.  Priority is given to businesses that plan to locate or expand in communities with high levels of unemployment.

JOB TRAINING

Maryland Industrial Training Program (MITP): Provides grants to reimburse companies for costs associated with new workforce development and training activities.  This program is designed to retain or assist in the expansion of existing industries.

SPECIAL ZONING

Enterprise Zone: Companies that locate or expand in one of 31 designated Enterprise Zones may be eligible for corporate income tax and real property tax credits in exchange for creating new jobs and making capital improvements.  

Last updated: April 2017

 


 
BIGGINS LACY SHAPIRO & COMPANY
 
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
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Chicago, IL 60606
(312) 924-2490
CALIFORNIA
1255 Treat Boulevard, Suite 300
Walnut Creek, CA 94597
(925) 239-1711