SPOTLIGHT PROGRAMS

More Jobs for Marylanders Tax Credit Program for Manufacturers and Non-Manufacturers:    Manufacturers locating in Maryland are eligible to apply a refundable tax credit of up to 4.75% of wages for each qualified position created as part of the project. The credit is available for 5 years for projects locating in a Tier 2 area and for 10 years for projects locating in a Tier 1 area. Manufacturers in Tier 1 Areas must create at least 10 new jobs to qualify while manufacturers in Tier 2 Areas must create at least 20 new jobs. Non-manufacturing employers can qualify for the tax credit program if they are locating in a federally designated Opportunity Zone and create at least 10 positions paying at least $50,000 per year.

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TAX CREDITS

Job Creation Tax Credit (JCTC): Businesses that create at least 60 new jobs may be eligible for a state income tax credit of up to $3,000 per job or $5,000 per job in a “revitalization area.” If the position is filled by a qualified veteran employee, the credit is raised to $4,000 or $6,000 if located in a “revitalization area.” The number of employees needed for qualification is lowered to 25 if located in a JCTC Priority Funding Area and to 10 if located within counties designated based on average annual employment and median household income.  The qualified positions must be full-time and pay at least 120% of the Maryland state minimum wage. The business may not claim more than $1 million in a credit year. Program is capped at $4 million in tax credits in a calendar year.

One Maryland Tax Credit: Investment tax credit program available for businesses that locate in one of 10 qualified distressed counties. To qualify, a company must invest a minimum of $500,000 in a business facility and create at least 10 new jobs but to qualify for the maximum $5 million credit, the business must have at least 50 new qualified positions within 24 months. Unused credits may be carried forward for up to 15 years.

Brownfields Revitalization Incentive Program (BRIP): Provides tax credits to sites located in a jurisdiction that participates in the in BRIP. Five years after cleanup, the site may also qualify for real property tax credit between 50%-70% of the increased value. In an Enterprise Zone, the credit may last for ten years. The credit may not exceed 100% of increased value on the site when combined with other real property tax credits. This program is designed to help the redevelopment of properties previously used for commercial or industrial purposes.

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 10% 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 exceeds $4.5 million, the business’ respective tax credits will be prorated.

Enterprise Zones: Companies that locate or expand in one of 34 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.  

Maryland Opportunity Zone Enhancement Credits: Provides enhancements to several economic development tax credit programs for businesses located in Maryland Opportunity Zones that meet certain requirements. Businesses can apply for Level 1 or Level 2 enhancements. The enhancement is dependent on credits being issued through other programs and industry.

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TAX EXEMPTIONS

Data Center Tax Exemption: Data centers that locate or expand in Maryland that invest at least $5 million in any part of the state ($2 million requirement in Tier 1 areas) can qualify for a 10-yearsales and use tax exemptions on data center personal property. The benefit period can be extended to 20 years if the business invests at least $250 million within the first 10 years.

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DIRECT FINANCIAL ASSISTANCE

Advantage Maryland (also known as MEDAFF): 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.

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JOB TRAINING

Maryland Apprenticeship and Training Program (MATP): 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.

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Last Updated: May 2023