Employee Status Updated: 12/12/2019 12:00 AM Normal
Office Status: Normal
Employee Information
Business Financing

Incentives & Financing

 

 

Job Creation

ADVANCE Maryland: Economic gardening program for second-stage entrepreneurs that offers businesses critical strategic information customized to their needs.

Economic Development Opportunities Fund (Sunny Day): Supports extraordinary economic development opportunities that create and retain employment as well as create significant capital investments.

Job Creation Tax Credit Tax Credit: Businesses that create a minimum number of new full-time positions may be entitled to state income tax credits of up to $3,000 per job or $5,000 per job in a "revitalization area." 

More Jobs for Marylanders-Manufacturing Tax Credit: Provides new and existing manufacturers with tax incentives tied to job creation for a 10-year period, including a refundable income tax credit, and encourages additional investment in new equipment through accelerated and bonus depreciation. 

New and Expanding Business Tax Credit: Qualifying local businesses creating 10 or more full-time jobs and/or are new to the county and in the county’s targeted industries are eligible to receive up to $100,000 through this program.

 

 

Cybersecurity / Defense

Buy Maryland Cybersecurity (BMC) Tax Credit: Provides an income tax credit of 50% of the purchase price for Maryland companies with 50 or fewer employees that purchase cybersecurity goods, products or services from Qualified Maryland Cybersecurity Sellers (QMCS). 

Cybersecurity Investment Incentive Tax Credit: Provides a refundable income tax credit to qualified investors who invest in a Qualified Maryland Cybersecurity Company (QMCC). 

Maryland Defense Cybersecurity Assistance Program (DCAP)       Grant: DCAP provides funding and assistance for defense contractors to comply with the DFARS and NIST 800-171 Standards for Cybersecurity. 

Maryland Defense Diversification Assistance Program (MDDA): Provides training and services to help eligible defense-dependent companies diversify their businesses and find new types of revenue streams. 

Employer Security Clearances Costs (ESCC) Tax Credit: Provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs) and first-year leasing costs for small businesses doing security-based contract work. 

 

 

Technology

Maryland Technology Internship Program (MTIP): Helps Maryland retain top talent by offering financial assistance to technology-based businesses, as well as state and local agencies, to hire more interns.

More Jobs for Marylanders - Manufacturing Tax Credit: Provides new and existing manufacturers with tax incentives tied to job creation for a 10-year period, including a refundable income tax credit, and encourages additional investment in new equipment through accelerated and bonus depreciation. 

Partnership for Workforce Quality (PWQ): Provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. 

TEDCO Seed Investment Fund: Supports small, seed-stage, for-profit Maryland companies in their effort to develop and commercialize new technology-based products. 

UM Maryland Industrial Partnerships (MIPS) Program Tech Transfer: Provides funding, matched by participating companies, for university-based research projects that help companies develop new products. 

 

Research

Maryland E-Nnovation Initiative Fund (MEIF): Offers a state match to private funds raised in support of endowed chairs at Maryland's nonprofit institutions of higher education. Under the fund, $8.5 million will be appropriated by the Governor annually from fiscal 2016 through 2021. 

Maryland Momentum Fund: Funds for investing in promising early stage companies associated with the University System of Maryland (USM). Maryland-based companies that are seeking equity financing or debt financing that is convertible into equity may apply. 

Research and Development Tax Credit Tax Credit: Businesses that have qualified R&D expenditures in Maryland may qualify for two state income tax credits, the Basic R&D Tax Credit and the Growth R&D Tax Credit. 

 

Small Business

ADVANCE Maryland: Economic gardening program for second-stage entrepreneurs that offers businesses critical strategic information customized to their needs.

ExportMD Program: Helps to offset some of the costs of marketing internationally for Maryland's small and mid-sized companies, providing up to $5,000 in reimbursement for expenses associated with an international marketing project. 

Maryland Economic Adjustment Fund (MEAF): Assists business entities in the state with modernization of manufacturing operations, development of commercial applications for technology, and exploring and entering new markets._ 

Maryland Momentum Fund: Funds for investing in promising early stage companies associated with the University System of Maryland (USM). Maryland-based companies that are seeking equity financing or debt financing that is convertible into equity may apply. 

Maryland Small Business Development Fund Authority (MSBDFA): Assists small businesses unable to obtain adequate business financing on reasonable terms through normal financing channels. 

NIH Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Program: Federal funding for early stage U.S.-based small businesses creating innovative technologies to improve health. 

Small Business Relief Tax Credit: Refundable tax credit available to small businesses that provide their employees with paid sick and safe leave. 

Small, Minority and Women-Owned Business Account- Video Lottery Terminal Fund (VLT): Proceeds from video lottery terminals (slots) provide financing to qualifying small, minority and women-owned businesses located in targeted areas surrounding six Maryland casinos. 

State Small Business Credit Initiative (SSBCI):       Provides direct funding for state credit enhancement programs. These funds must target an average borrower size of 500 employees or less and loans averaging $5 million. 

TEDCO Seed Investment Fund: Supports small, seed-stage, for-profit Maryland companies in their effort to develop and commercialize new technology-based products. 

 

Veterans

Hire Our Veterans Tax Credit:     Provides a State income tax credit to small businesses for hiring qualified veterans based on wages paid to those veteran employees. 

Maryland Defense Diversification Assistance Program (MDDA): Provides training and services to help eligible defense-dependent companies diversify their businesses and find new types of revenue streams. 

Military Personnel and Veteran-Owned Small Business Loan Program: No interest loans of up to $50,000 for businesses owned by military reservists, veterans, National Guard personnel and for small businesses that employ or are owned by such persons. 

 

Agricultural

Maryland Agriculture & Resource-Based Industry Development Corporation (MARBIDCO): Helps Maryland's (typically small and family-owned) farm, forestry, and seafood businesses to prosper through the provision of targeted financial and other services that helps retain existing resource-based industry production and commerce, promote rural entrepreneurship, and nurture emerging or expanding agricultural enterprises.

Maryland Resource-Based Industry Financing Fund Loan (MRBIFF): Offers low-interest loans to established Agricultural/Resource-Based Industry firms for the purchase of land and capital equipment for production and processing activities, and environmental or water-quality enhancement projects. 

Maryland Value Added Producer Matching Grant Program: Makes grants available to those pursuing obtaining financial support from the USDA's Value Added Producer Grants Program. 

Maryland Wineries and Vineyards Tax Credit Tax Credit: Provides an income tax credit for qualified capital expenses related to a Maryland winery or vineyard. 

Maryland Vineyard Planting Loan Fund (MVPLF): Helps meet the unique financing needs of Maryland's rural landowners wanting to plant vineyards and develop wineries. 

U.S. Department of Agriculture (USDA) Programs and Services for Businesses: USDA provides funding opportunities for rural small businesses through loans, loan guarantees and grants. 

Rural Business Energy Efficiency Improvement Loan Fund: Loans for energy efficiency projects undertaken by food and fiber producers and processors implementing the recommendations of a third-party energy auditor.

Rural Business Equipment and Working Capital Loan Fund: Offers low-interest loans to established Agricultural/Resource-Based Industry firms and producers for working capital and equipment purchases. 

Southern Maryland Agricultural Development Commission (SMADC): Support farms and the future of agriculture in the Southern region through farmland preservation, extensive support for regional farmers, and resources to help consumers find the farms they need.

 

Additional Funding Sources

Advantage Maryland (also known as MEDAAF): Funds grants, loans and investments to support economic development initiatives in priority funding areas of the state. Uses include business attraction and retention, infrastructure support, brownfield redevelopment, revolving loan funds and local strategic planning. 

Maryland Industrial Development Financing Authority (MIDFA): Encourages private sector investments with insurance, and the issuance of tax-exempt and taxable revenue bonds for projects located in Priority Funding Areas. Uses include land acquisition, building acquisition, construction costs and more. 

Opportunity Zone Tax Credit: Nationwide program that provides federal tax incentives for investment in distressed communities over the next 10 years.

 

 

 

Quick Resource Links/Downloads:

·         Opportunity Zones

·         Maryland Department of Commerce

·         New and Expanding Business Tax Credit

·         TEDCO

·         Southern Maryland Agricultural Development Commission (SMADC)

·         Maryland Agriculture & Resource-Based Industry Development Corporation (MARBIDCO)

 

 

Tax Rates

 

 

 

 

Corporate Income Tax (FY19)

none

8.25%

Base – federal taxable income

 

Personal Income Tax (FY19)

3.2%

2.0%-5.75%*

Base – federal adjusted gross income *Graduated rate peaking at 5.75% on taxable income over $300,000

 

Sales & Use Tax  (FY19)

None

6.0%

Exempt – sales for resale; manufacturer’s purchase of raw materials; manufacturing machinery and equipment; purchases of materials and equipment used in R&D and testing of finished products; purchases of computer programs for reproduction or incorporation into another computer program for resale

Real Property Tax (FY19)

$0.8478

 

$0.112

Effective rate per $100 of assessed value In an incorporated area a municipal rate will also apply

Business Personal Property Tax (FY19)

$2.1195

none

Rate per $100 of depreciated value Exempt – manufacturing and R&D machinery, equipment, materials and supplies; manufacturing, R&D and warehousing inventory