One of Governor Hogan’s top legislative priorities of 2017, More Jobs for Marylanders is a new program that incentivizes and encourages manufacturers to create jobs in areas of Maryland that need jobs the most.
Created for new and existing manufacturing businesses, the Program provides tax incentives tied to job creation for a 10-year period, encourages additional investment in new equipment through accelerated and bonus depreciation and helps to strengthen Maryland’s workforce.
Existing manufacturing businesses will qualify for the 10-year income tax credit if they create five new jobs in a Tier 1 County that includes Baltimore City, Allegany, Dorchester, Somerset, and Worcester Counties. Tier 2 Counties which includes includes Garrett County and all remaining counties, can take advantage of the program by creating 10 new jobs.
New manufacturing businesses that qualify may be entitled to a 10-year...
Income Tax Credit: A qualified business entity may claim a credit against the State income tax equal to the total wages paid for the qualified positions multiplied by 5.75%. If the value of the credit exceeds the tax liability imposed in the year, the business can claim a refund in the amount of the excess. Tax credits can be claimed beginning in tax year 2018.
Sales and Use Tax Refund: All personal property and/or services purchased by a qualifying business entity for use at a manufacturing facility may qualify for a refund of the State sales and use tax for purchases made on or after January 1, 2018.
State Property Tax Credit: The bill exempts 100% of the State property tax imposed on the real property that is owned by a qualifying business and located at the qualifying manufacturing facility beginning in fiscal 2018. The State Department of Assessments and Taxation (SDAT) must calculate the value of the credit in each year
Corporate Filing Fees: A qualified business entity is exempt from all business recording, filing, or special fees collected by SDAT.
The Department of Commerce is counting on the new program to free up capital for businesses looking to upgrade facilities, increase their staff or invest in other growth-related initiatives. It's expected to be most effective with small manufacturers that need capital to reinvest.
Additionally the Partnership for Workforce Quality (PWQ) provides up to $1 million in matching grants to manufacturers for incumbent worker training programs. Workforce Development Scholarships up to $1 million are available for eligible students enrolled in job training programs at community colleges such as Garrett College. Companies can also take advantage of a $1,000 income tax credit, per employee, when hiring eligible apprentices. A general push toward technical trades training for high school students is expected to also tie into the program.
Businesses interested in taking advantage of the More Jobs for Marylanders program can apply as of June, 2017. Businesses that meet the requirements to enroll in the program will be certified by Commerce as a Qualified Business Entity eligible for the applicable incentives available under the program.
Notice of Intent to enroll in the More Jobs for Marylanders incentive program.
Existing Maryland Manufacturers project enrollement application.
New Manufacturer project enrollment application.
For more information, contact:
Mark A. Vulcan, Program Manager, Tax Incentives Maryland Department of Commerce, Office of Finance Programs
401 E. Pratt St, 15th floor Baltimore, MD 21202 410-767-6438 877-821-0099