Tax Incentives

Montgomery County tax incentives

• New Jobs Tax Credit: Combined state and county tax credits to businesses that hire 25 or more permanent, full-time employees and occupy 5,000 square foot of new and previously unoccupied space
• Enhanced New Jobs Tax Credit: Combined state and county tax credits to businesses that create at least 500 or 1,250 new permanent and full-time positions, increase its space by at least 250,000 square feet, and pay all these employees at least 150% of the federal minimum wage
• Local Biotech Investment Tax Credit Program: Modeled after and working in collaboration with Maryland’s Biotech Investment Tax Credit Program, the county’s program allows investors receiving state tax credits to also receive a supplemental payment from the county based on their investments in local biotech companies.

State of Maryland tax incentives

• Job Creation Tax Credit: $1,000 tax credit to businesses that create new jobs to encourage businesses expanding or relocating to Maryland
• Job Creation and Recovery Tax Credit: Tax credits to businesses that hire Maryland residents who have been unemployed for the previous 12 months
• Enterprise Zone Tax Credit: Income tax and real property tax credits to businesses locating in a Maryland Enterprise Zone in return for job creation and investments
• Research and Development Tax Credit: Tax credits to businesses with qualified research and development expenses in Maryland if eligible and certified by the Maryland Department of Business and Economic Development
• Biotechnology Investment Tax Credit: Income tax credits to individuals or any entities who invest at least $25,000 in a Qualified Maryland Biotechnology Company
• Brownfields Revitalization Incentive Program: Financial incentives in the form of grants or low interest loans for the redevelopment of certain properties that are contaminated by hazardous materials or oil
• Cellulosic Ethanol Technology R&D Tax Credit: State income tax credit for businesses that incur qualified cellulosic ethanol technology research and development expenses in Maryland
• Community Investment Tax Credit: Allocations of State tax credits to 501(c)(3) nonprofit organizations for use as incentives to attract contributions from individuals and businesses to benefit local projects and services
• Maryland Heritage Structure Rehabilitation Tax Credit: Maryland income tax credits equal to 20% of the qualified capital costs expended in the rehabilitation of a “certified heritage structure

Financing Programs

Montgomery County financing programs

• Economic Development Fund Grant/Loan Program: Private employers who retain and create jobs in Montgomery County, especially high technology and manufacturing companies
• Small Business Revolving Loan Program: Small businesses with annual revenues of less than $5 million and fewer than 75 employees

State of Maryland financing programs

• Maryland Economic Development Assistance Authority and Fund: Assistance to the business community and political jurisdictions with five financing capabilities
• Maryland Economic Adjustment Fund: Financial assistance to business entities in the state with modernization of manufacturing operations, development of commercial applications for technology, and exploring and entering new markets
• Maryland Small Business Development Financing Authority: Financing for small businesses that are not able to qualify for financing from private lending institutions or owned by socially and economically disadvantaged persons
• Maryland Industrial Development Financing Authority: Private activity revenue bonds and credit insurance in the form of a deficiency guaranty to reduce lender’s risk
• Maryland Venture Fund: Direct investments in technology and life science companies and indirect investments in venture capital funds
• Community Development Block Grant Program: Funds dispersed to a local jurisdiction in the form of a conditional grant and then used for public improvements or loaned to a business
• Maryland Capital Access Program: Credit enhancement program for small businesses that enables private lenders to establish a loan loss reserve fund from fees paid by lenders, borrowers, and the State of Maryland