The More Jobs for Marylanders tax credit provides tax incentives tied to job creation for manufacturing businesses.
One of Governor Hogan's top legislative priorities of 2017, More Jobs for Marylanders, promotes the growth of manufacturing in Maryland by providing tax incentives for manufacturing job creation, encourages manufacturers to invest in new equipment through accelerated and bonus depreciation, and funds job training and apprenticeship programs to help strengthen Maryland's workforce.
BENEFITS
New and Existing manufacturers located in a Tier 1 or Tier 2 County may qualify for the following credits, available for a 10-year benefit period.
- TIER 1 NEW BUSINESS: (a) a refundable credit against the State's income; (b) a credit against the State's portion of the property tax; (c) a refund of sales and use tax; and (d) a waiver of fees charged by SDAT.
- TIER 1 EXISTING BUSINESS: A refundable credit against the State's income tax.
- TIER 2 EXISTING BUSINESS: A refundable credit against the State's income tax.
*Tier 1 Counties include Baltimore City, Allegany, Baltimore, Caroline, Dorchester, Garrett, Kent, Prince George's Somerset, Washington, Wicomico and Worcester Counties. Tier 2 Counties include all other Maryland Counties.
ELIGIBILITY
To qualify a business must:
- Be a manufacturer primarily engaged in activities that according to the North American Industrial Classification System, would be included in Sector 31, 32, or 33, except for Refiners.
- Offer ongoing job training or a postsecondary education program (e.g. tuition reimbursement).
- Provide Notice of Intent to enroll in the program:
- New manufacturers provide Notice of Intent to Commerce before establishing a facility in Maryland.
- Existing manufacturers provide Notice of Intent to Commerce before creating new jobs.
- New or existing manufacturers in Tier 1 counties must create at least 5 new qualified jobs. (A qualified job is a job that is full-time, pays at least 120% of State minimum wage and is filled for 12 months.)
- Existing manufacturers in Tier 2 counties must create at least 10 new qualified jobs.
- The business must begin hiring within 12 months of its Notice of Intent to Commerce. Once it begins hiring, it must add 5 new qualified positions (Tier 1 Counties) or 10 new qualified positions (Tier 2 Counties) within 12 months after the date of its first new hire.
- Existing manufacturers that move from their facility one Maryland County into another after June 1, 2017 will not be eligible to participate.
- Be certified by Commerce as a qualified business entity.
Businesses can enroll their project in the program and be certified as a Qualified Business Entity until June 1, 2020. Businesses who have been certified to receive benefits under the program will receive for the full ten year duration, subject to appropriation.
If during the 10-year benefit period, the number of new qualified positions falls below the number the business received credit for in the first benefit year, the project will removed from the program and all benefits will be terminated.
APPLY
- A new manufacturer must provide notice before establishing its facility in Maryland and an existing manufacturer must provide notice before it begins creating new jobs.
- Upon receipt of the Notice of Intent, Commerce will provide the business with an application to enroll its project in the More Jobs for Marylanders Incentive Program.
- Businesses that meet the requirements to enroll their project in the program will be certified by Commerce as a Qualified Business Entity eligible for the applicable incentives available under the program.
- Businesses should apply on July 1 for an Initial Income Tax Credit Certificate for those jobs that will qualify for credits during the fiscal year.
For Applications Materials and Additional Infromation visit:
Maryland Department of Commerce - More Jobs for Marylanders Tax Credit