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Job Creation Incentives

Businesses that create a minimum number of new full-time positions may be entitled to state income tax credits of up to $1,000 per job or$1,500 per job.

An income tax credit of 2.5% of aggregate annual wages for all newly-created, full-time jobs up to $1,000 per new job may be given. In revitalization areas, such as Somerset County, the credit increases to 5% of annual wages, up to $1,500 per new job. Credits may not exceed $1 million per credit year. If the credit is more than the tax liability, the unused credit may be carried forward for five years.

To be eligible, the following conditions apply:

  • Declaration of Intent – A business may not claim any employees hired prior to the business notifying the Maryland Department Commerce of its intent to seek certification for the Job Creation Tax Credit

  • Certification – A business must be certified as a qualified business entity eligible for the tax credit. To be certified, a business must submit applications to the Maryland Department Commerce (see below)

  • Job Creation Minimums – The business must create 60 new, full-time jobs at the facility during a 24-month period

  • The positions must be filled for 12 months

  • Qualified positions are full-time and pay at least 150% of federal minimum wage

  • The facility must be engaged in an eligible activity

  • The expansion or establishment of a business must be at a single location in the state. A single firm may have more than one eligible location if each is certified and meets the requirements of the statute.

 

The business is encouraged to submit a Preliminary Application, along with the Employment Affidavit. The business must be certified as eligible for the tax credit by submitting a Final Application. See more at http://business.maryland.gov/fund/programs-for-businesses/job-creation-tax-credit#sthash.La6fCAPp.dpuf. Contact DBED at410-767-4980.

 

ONE MARYLAND TAX CREDIT

Businesses that invest in an economic development project in Somerset County and create at least 25 new full-time jobs may qualify for up to
$5.5 million in state income tax credits.

 

Project tax credits of up to $5 million are based on qualifying costs incurred in connection with the acquisition, construction, rehabilitation and installation of a project. Start-up tax credits of up to $500,000 are available for the expense of moving a business from outside Maryland and for the costs of furnishing and equipping the new location. The credit can be carried forward 14 years and is refundable, subject to certain limitations.

 

Project costs include those major capital expenditures related to land acquisition, building construction, rehabilitation, installation and purchasing of equipment.

 

The business may qualify for a state income tax credit of up to $500,000 of start-up costs. Start-up costs include the expense of moving a business from outside Maryland and for the costs of furnishing and equipping a new location for ordinary business functions. Examples of eligible start-up costs would include the cost of fixed telecommunications equipment, office equipment, or office furnishings. The start-up credit is calculated as the lesser of eligible start-up costs or $10,000 multiplied by the number of new qualified positions.

 

A business may not claim any expenses incurred or jobs created prior to notifying the Maryland Department Commerce in writing of its intent to seek certification for a One Maryland Tax Credit. A business must be certified as a qualified business entity eligible for the One Maryland Tax Credit. Applications for certification are available from the Maryland Department Commerce.

 

The business must create at least 25 new, full-time qualified positions at the project within 24 months of the date the project is placed in service.
The positions must be filled for 12 months. Qualified positions are full-time and pay at least 150% of federal minimum wage. The facility must be engaged in an eligible activity. Contact the Somerset County Economic Development Department at 410-651-0500.