Tax Credits

The Kent County Commerce Zone Tax Credit program was adopted to give commercial or industrial real property owners, making a capital investment on the property, where a business entity locates to conduct business, a tax credit against the increased assessed value of the property for ten years.   The credit is 50% for the first 5 years; 25% for years 6 and 7; and 15% for years 8 through 10.  The Commerce Zone Tax Credit was adopted by the County Commissioners of Kent County on June 6, 2017 and takes effect on July 20, 2017.

The Maryland Enterprise Zone program, established by the Maryland General Assembly, is an incentive program designed to provide economic stimulus to communities by providing tax credits to businesses in qualified zones. Click to learn more about this program and how it can help your business.

The Small Business Relief Tax Credit is a refundable tax credit available to small businesses that provide their employees with paid sick and safe leave.

Small businesses may claim a refundable tax credit for the accrued paid sick and safe leave for each employee earning paid sick and safe leave up to $500 per employee, or $7,000 per small business.

For more information, visit http://commerce.maryland.gov/fund/programs-for-businesses/small-business-relief-tax-credit

The More Jobs for Marylanders tax credit provides tax incentives tied to job creation for manufacturing businesses.  Kent County becomes a Tier 1 County on July 1, 2018.

The Job Creation Tax Credit was adopted by the County Commissioners in 1998 and amended in 2001.  A business must construct or expand by at least 5,000 square feet the premises on which it conducts its business and employ at least 10 individuals in new, full-time positions.  The tax credit is against the increased assessed value of the property for six years; 52% for the first and second years, 39% for the third and fourth year; 26% for the fifth and sixth year. 

Provide an income tax credit of $3,000 per new job to a business that creates new full-time jobs.  If the business locates in a revitalization area (state enterprise zone, federal empowerment zone, or DHCD Sustainable Community), the credit increases to $5,000 per new job.

The business may not claim more than $1 million in a credit year. The program is capped at $4 million in tax credits in a calendar year. Credits are certified on a first-come, first-served basis based on when the Maryland Department of Commerce (Commerce) receives the final application and the availability of credits.

http://commerce.maryland.gov/fund/programs-for-businesses/job-creation-tax-credit

The One Maryland Tax Credit is an income tax credit for businesses that invest in an economic development project in a Tier 1 county and create a minimum number of qualified jobs.  Kent County becomes a One Maryland Jurisdiction on July 1, 2018.

CIITC provides a refundable income tax credit to Qualified Investors who invest in Qualified Maryland Cybersecurity Companies (QMCCs). The purpose of this program is to attract investment in Maryland cybersecurity companies in order to help them grow, create jobs, and retain intellectual property in Maryland.​

Learn more at http://commerce.maryland.gov/fund/programs-for-businesses/cyber-tax-credit

The Buy Maryland Cybersecurity Tax Credit provides an incentive for Qualified Maryland Companies to purchase cybersecurity technologies and services from a Qualified Maryland Cybersecurity Seller. Qualified Maryland Companies may claim a tax credit for 50% of the net purchase price of cybersecurity technologies and services purchased from a Qualified Maryland Cybersecurity Seller. The tax credit must be claimed for the tax year in which a purchase is made.

http://commerce.maryland.gov/fund/programs-for-businesses/buy-maryland-cybersecurity-tax-credit

To ensure a vibrant cultural life in the downtown area, the Chestertown Arts and Entertainment District offers several place-based tax abatements for artists, entrepreneurs, and landlords. These benefits went into effect on January 1, 2016. 

• INCOME-TAX SUBTRACTION FOR ARTISTS
• PROPERTY TAX CREDITS FOR PROPERTY OWNERS
• ADMISSION & AMUSEMENT TAX EXEMPTION

https://townofchestertown.com/residents-3/art-and-culture/

https://msac.org/programs/arts-entertainment-districts

A&E FAQ

A&E District Real Estate Property Tax Registration Form

The program is designed to encourage the deployment of energy storage systems in Maryland. Energy storage devices function as battery backups, which can be used in conjunction with or without renewable energy sources.

https://energy.maryland.gov/business/Pages/EnergyStorage.aspx