Businesses statewide can be considered for the tax credits and incentives outlined below. Legislation is constantly changing, however, and if any information here is found to be incorrect, or should you require additional information, please contact the Economic Alliance.
Accessibility Tax Credit
Property tax credit can be obtained when the property has features such as wide doors, no-step entrances, etc.
Arts and Entertainment Districts
Renovated manufacturing, commercial, or industrial buildings within designated areas are eligible for a property tax credit.
Bio-Heating Oil
Corporations or individuals who use heating oil blends of at least 5% biodiesel can receive income tax credit.
Biotechnology Investment Incentive Tax Credit
This incentive allows investors or venture capitalists to claim an income tax credit.
Brownfields Tax Incentive
Development of approved brownfields sites qualifies a business for a property tax credit for up to five years.
Clean Energy Incentive
The Maryland Clean Energy Incentive Act establishes a program to award tax credits to individuals and corporations that use qualified energy resources at a qualifying Maryland facility to produce electricity.
Challenge Investment Program
Part of the Maryland Venture Fund, this program provides financing for seed-stage companies to cover a portion of the initial costs associated with bringing new products to market.
Community Investment Tax Credit
Businesses that invest in approved projects are eligible for a tax credit equal to 50% of the donation, and can be applied to taxes other than income tax. The credit is currently capped at $250,000.
Commuter Tax Credit
Businesses can earn a tax credit for providing commuter benefits to their employees.
Employer Established Work-Based Learning Programs for Students –
Businesses can earn a state income tax credit by employing students of a certain age who are enrolled in an approved work-based learning program.
Employer-Provided Long-Term Care Insurance Tax Credit
Businesses that provide long-term care insurance benefits to at least one employee are eligible for a tax credit that can be taken against various taxes.
Employment Opportunity Tax Credit
Businesses who employ AFDC or FIP recipients can apply for a tax credit for the wages, child care, or transportation costs paid to those employees.
Empowerment Zone Incentives
Businesses located in, or who have employees who live in EZs can earn up to $3000 in tax credit per person. Property tax can be earned for property improvements. Additionally, investment in qualified businesses in low-income areas can earn tax credits as well.
Enterprise Investment Program
Established high technology companies with patented or proprietary products or processes can receive direct equity investments from the state.
Equity Participation Investment Program
The Maryland Small Business Development Financing Authority will make direct equity investments to encourage and assist the start-up, development, and retention of Maryland-based franchises and technology businesses owned and operated by socially or economically disadvantaged persons.
Film Production Activity, Employer Wage Rebate Grant Program
Films, commercials, and animation projects are some of the projects eligible for a tax credit up to 25% of the direct cost of film production, depending on the number of locals employees and local businesses involved with the film.
Green Buildings Tax Credit
Businesses that construct or rehabilitate a building that conforms to specific standards intended to save energy and to mitigate environmental impact may take a credit for a portion of the cost.
Heritage Structure Rehabilitation Tax Credit
Substantial expenditures incurred in a 24-month period to rehabilitate a certified heritage structure are eligible for tax credit equal to 20% of the expenditure.
Income Tax Credit for Cellulosic Ethanol Technology Research and Development
Businesses can receive up to $250,000 in tax credits for research and development of cellulosic ethanol technologies.
Job Creation Tax Credit
Business growth that results in the creation of new jobs before January 1, 2010, may be eligible for a tax credit.
Long-Term Employment of Ex-Felons Tax Credit
Eligible types of business can claim tax credit for hiring one or more ex-felons between 2007 and 2011.
Maryland Disability Employment Tax Credit
Businesses that hire people with disabilities may be entitled to a tax credit for wages paid to the employees and for child care or transportation expenses paid on behalf of the employees.
Maryland Economic Adjustment Fund
This fund provides loans within the state for the purpose of modernizing operations, developing commercial applications for technology, or to facilitate the exploration of new markets.
Maryland Export Credit Program
The basic objective of the Program is to encourage the exportation by business enterprises located in Maryland of goods and services to foreign purchasers by assigning to those business enterprises offset credits accrued by the State. A business enterprise that has entered into or is bidding on a foreign contract is eligible to apply for assignment of offset credits.
Maryland Industrial Development Financing Authority:
1. Conventional Loan Program
The Program provides financial assistance in order to increase and expand financing opportunities for businesses, to encourage economic development, and to encourage the growth of exports through financial assistance.
2. Bond Program
The objective of the Program is to provide financial assistance in order to increase and expand financing opportunities for businesses and to encourage economic development through financial assistance.
Maryland-Mined Coal Tax Credit
A business with a co-generator, or that operates as a public service company or electric supplier can receive a tax credit by purchasing Maryland-mined coal.
One Maryland Tax Credit
Businesses that invest in an economic development project in a “qualified distressed county” may qualify for project tax credits of up to $5 million and start-up tax credits of up to $500,000.
Research and Development Tax Credit
A firm that engages in qualified research and development can be eligible for a Basic R&D or a Growth R&D Credit.
Solar and Geothermal Tax Incentive and Grant Program
This program exempts certain geothermal and solar energy equipment from sales tax, as well as providing property tax exemptions and price caps on geothermal property.
Small Business Development Contract Financing Fund
This fund guarantees loans or equity investments, or makes loans, to economically or socially disadvantaged business persons for working capital or equipment needed to perform federal, State, or local government or public utility contracts in order to encourage economically or socially disadvantaged persons to seek and perform these contracts.
Small Business Development Guaranty Fund
This fund is used to guarantee up to 80% of the principal and interest of a long-term loan to refinance a loan applicant’s existing debt.
Small Business Surety Bond Guaranty Program
This program guarantees surety bonds to sureties licensed to do business in Maryland to enable small Maryland businesses to obtain the bid, payment, and performance surety bonds necessary to perform local, State, and federal government and public utility contracts.
State Agency Loan Program
Through this revolving loan program, the Maryland Energy Administration provides loans to State agencies for cost-effective energy efficiency improvements in State facilities.
Telecommunications Property Tax Credit
A telecommunications company that is a public utility is allowed a credit for a portion of the total property taxes paid by the company on its operating real property in Maryland, other than operating land, that is used in its telecommunications business.
Water Quality Improvement Tax Credit
A credit may be claimed for the additional commercial fertilizer costs necessary to convert agricultural production to a certified nutrient management plan.