Tax Credits

One Maryland 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.

BENEFIT

 

The amount of income tax credit that a business will qualify for depends on the amount of capital investment it makes in the project and the number of new qualified jobs it creates in a 24 month period.  A business may qualify for the following maximum credit amounts:
  • For businesses that create 10-24 qualified positions: maximum $1 million in credits based on eligible project costs.
  • For businesses that create 25-49 qualified positions: maximum $2.5 million in credits based on eligible project costs.
  • For businesses that create at least 50 qualified positions: maximum $5 million in credits based on eligible project costs.

ELIGIBILITY​

  • Location - A business must locate or expand in a "Priority Funding Area" in a Tier 1 County. Tier 1 Counties are subject to change. Please verify with the Maryland Department of Commerce (Commerce) that the project location is in a PFA and Tier 1 County.
    • Beginning July 1, 2018, Tier 1 Counties include: Baltimore City and Allegany, Caroline, Dorchester, Garrett, Kent, Somerset, Washington, Wicomico and WorcesterCounties.
  • Declaration of Intent - A business may not claim any expenses incurred or jobs created priorto notifying Commerce in writing of its intent to seek certification for a One Maryland Tax Credit.
  • Certification - A business must be certified as a qualified business entity eligible for the One Maryland Tax Credit. Applications for certification are available from Commerce.
  • Job Creation Minimums - The business must create at least 10 new, full-time qualified positions at the project within 24 months. However, to receive the maximum $5 million credit, the business must have at least 50 new qualified positions within 24 months.
  • The positions must be full-time, pay 120% of State Minimum Wage, be filled for 12 months, and be a “net new” job to Maryland. The business must create the minimum number of jobs in a 24-month period.
    • As of 7-1-18, 120% of State Minimum Wage is$12.12/hour
  • Have at least $500,000 of eligible costs.
  • The facility must be engaged in an eligible activity.

For Applications Materials and Additional Infromation visit:

Maryland Department of Commerce - One Maryland Tax Credit

Statute
Regulations
HB 1295
One Maryland Fact Sheet - Programmatic Changes Effective July 1, 2018

One Maryland Tax Credit - Presentation