Biggins Lacy Shapiro & Company, LLC

Maryland Economic Development Incentive Programs

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 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. 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.   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 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 14 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.  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 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 AND 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.

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.  

TRAINING  PROGRAMS

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. 

Updated June 2019



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
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