Maryland Enacts Manufacturing Incentive Program

Maryland has enacted a manufacturing incentive program called the “More Jobs for Marylanders” program. Under the program, existing businesses are eligible for a credit against the state income tax. New businesses are eligible for a sales and use tax refund; a credit against the state income tax; a credit against the state property tax; and a waiver of the corporate recording and filing fees. The incentives may be claimed for up to 10 consecutive years.

A qualified business is eligible for a refund of sales and use tax paid during the immediately preceding calendar year for qualified personal property or services purchased on or after January 1, 2018 if the property or services were purchased for use solely at an eligible project.

The incentive program is available to businesses that are primarily engaged in manufacturing, excluding refiners. Businesses must be located in certain counties and create new jobs at a qualified facility. A business may no longer claim program benefits if the number of qualified jobs decreases below the total number in the first year in which the business qualified. Businesses must notify the Maryland Department of Commerce (DOC) of their intent to seek certification for an eligible project prior to taking action that qualifies it for the incentive program. The DOC may not certify any business as eligible after June 1, 2020.

As mentioned above, the incentive program additionally allows for credits on income tax and property tax and a waiver of corporate recording and filing fees. (Ch. 149 (S.B. 317), Laws 2017, effective June 1, 2017)

Posted on May 8, 2018