MARYLAND INCENTIVES SUMMARY
Economic Development Opportunities Fund
Also known as the Sunny Day Fund, this program supports extraordinary economic development opportunities that create and retain a large number of employment opportunities, particularly in areas of high unemployment, while commanding significant capital investments (a minimum of five times the amount of funding). Projects are evaluated on a competitive basis and must be consistent with the state's strategic economic development plan.
Advantage Maryland provides grants, loans, and investments to support economic development initiatives include business attraction and retention, infrastructure support, brownfield redevelopment, arts and entertainment districts, daycare, revolving loan funds and local strategic planning. Projects must be within Priority Funding Areas and eligible industry sectors. The state awards this incentive on a competitive basis.
Job Creation Tax Credit (JCTC)
Companies creating a minimum of 60 new jobs anywhere in Maryland, or 25 new jobs in a Priority Funding Area, are eligible for an income tax credit of up to $3,000 per new job and up to $5,000 per new job in revitalization areas. Total tax credits per project may not exceed $1 million per tax credit year. Unused tax credits may be carried forward for five years. The JCTC requires all new jobs created within a 24-month period, and maintain the jobs for 12 months.
The program is capped at $4 million in tax credits in a calendar year, and remains in effect until January 1, 2022, subject to extension by the Maryland General Assembly.
Enterprise Zone Tax Credit (EZ)
The EZ program provides real property and state income tax credits for businesses located in a Maryland enterprise zone for projects creating new jobs and making capital investments. Companies locating in Focus Areas may be also qualified for personal property tax credits on new investments in personal property and enhanced income tax credit for creating new jobs.
One Maryland Tax Credit
The One Maryland tax credit is available to support projects located in Priority Funding Area and based on the number of new, full-time jobs created in the first 24 months of operation and the amount of capital investment. A tiered approach is used to determine the amount of tax credits, as follows:
- Creation of 10 - 24 new jobs qualifies for a tax credit of up to $1 million based on the amount of eligible capital investment.
- Creation of 25 - 49 new jobs qualifies for a tax credit of up to $2.5 million based on the amount of eligible capital investment.
- Creation of 50 or more new jobs qualifies for a tax credit of up to $5 million based on the amount of eligible capital investment.
Companies may not claim both the One Maryland Tax Credit and the Job Creation Tax Credit.
Notice: This list of economic development incentive programs is intended to provide a high-level overview of commonly pursued state discretionary programs. A comprehensive analysis of project details will determine the full scope of state and local incentive programs that may be available to support a specific project.