Md. Code, Economic Development, Title 6

Md. Code, Economic Development, Title 6
in effect

Md. Code, Economic Development § 6-101

(a) In this title the following words have the meanings indicated. (b) (1) “Central services” means the performance of central management or administrative functions. (2) “Central services” includes: (i) general management; (ii) accounting; (iii) computer tabulating; (iv) data processing; (v) purchasing; (vi) transportation or shipping; (vii) advertising; (viii) legal services; (ix) financial services; and (x) research and development. (c) “Company headquarters” means a facility where the majority of a business entity’s financial, personnel, legal, and planning functions are handled on a regional or national basis. (d) “Full-time position” means a position requiring an employee to work at least 840 hours during at least 24 weeks in a 6-month period. (e) “Qualified employee” means an employee filling a qualified position.

Md. Code, Economic Development § 6-201

The General Assembly intends that the tax exemption under § 11-227 of the Tax - General Article: (1) increase the film production activity in the State; (2) bring economic benefits to the State; and (3) generate increased employment opportunities in the State.

Md. Code, Economic Development § 6-202

To receive the tax exemption provided under § 11-227 of the Tax - General Article for a film production activity, a film producer or a film production company shall first have a certification of eligibility for the tax exemption from the Department.

Md. Code, Economic Development § 6-203

The Department and the Comptroller jointly shall adopt regulations defining a film production activity, tangible personal property, and taxable services used directly in connection with a film production activity under § 11-227 of the Tax - General Article.

Md. Code, Economic Development § 6-301

(a) In this subtitle the following words have the meanings indicated. (b) “Credit year” means the taxable year in which a qualified business entity claims the credit allowed in accordance with § 6–304(a) of this subtitle. (c) (1) “Qualified business entity” means a person conducting or operating a trade or business in the State that is certified in accordance with § 6–303 of this subtitle as qualifying for the tax credit under this subtitle. (2) For a person engaged in a business activity described in § 6–303(b)(1)(ii)13 of this subtitle, “qualified business entity”: (i) includes a person owning or operating the multi–use facility in which the entertainment, recreation, cultural, or tourism–related activities are operated; and (ii) does not include any separate entity that leases retail space at the facility. (d) (1) “Qualified position” means: (i) if the position is filled before October 1, 2021, a position that: 1. is full–time and of indefinite duration; 2. pays at least 120% of the State minimum wage; 3. is located in the State; 4. is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and 5. is filled; and (ii) if the position is filled on or after October 1, 2021, a position that: 1. is full–time and of indefinite duration; 2. pays at least: A. for an employee classification for which there is a prevailing wage rate, as defined under § 17–201 of the State Finance and Procurement Article, the prevailing wage; or B. for any other employee classification, 150% of the State minimum wage; 3. is located in the State; 4. provides career advancement training; 5. affords the employee the right to collectively bargain for wages and benefits; 6. provides paid leave; 7. is considered covered employment for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article; 8. entitles the employee to workers’ compensation benefits in accordance with Title 9 of the Labor and Employment Article; 9. offers employer–provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee’s net monthly earnings; 10. offers retirement benefits; 11. is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and 12. is filled. (2) “Qualified position” does not include a position that is: (i) created when an employment function is shifted from an existing business facility of a business entity in the State to another business facility of the same business entity if the position is not a net new job in the State; (ii) created through a change in ownership of a trade or business; (iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State; (iv) created when an employment function is contractually shifted from an existing business entity to another business entity in the State if the position is not a net new job in the State; or (v) filled for a period of less than 12 months. (3) For a person engaged in a business activity described in § 6–303(b)(1)(ii)13 of this subtitle, “qualified position” does not include any position other than a position engaged in: (i) the operation of entertainment, recreation, cultural, or tourism–related activities within the multi–use facility; or (ii) management, marketing, building maintenance, hotel services, or security for the multi–use facility. (e) “Qualified veteran employee” means an individual who: (1) is honorably discharged or released under honorable circumstances from active military, naval, or air service as defined in 38 U.S.C. § 101; and (2) is a qualified veteran as defined under § 51(d)(3)(A) of the Internal Revenue Code for purposes of the federal Work Opportunity Tax Credit. (f) “Revitalization area” means: (1) an enterprise zone designated by the Secretary under § 5–704 of this article; (2) an enterprise zone designated by the United States government under 42 U.S.C. §§ 11501 through 11505; (3) an empowerment zone or enterprise community designated by the United States government under 26 U.S.C. §§ 1391 through 1397F; (4) a sustainable community, as defined in § 6–301 of the Housing and Community Development Article; or (5) a Tier I county. (g) “Small business” means an individual, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a corporation that employs 50 or fewer total full–time employees. (h) “State priority funding area” means: (1) a municipal corporation; (2) Baltimore City; (3) a sustainable community, as defined in § 6–301 of the Housing and Community Development Article; (4) an enterprise zone designated by the Secretary under § 5–704 of this article; (5) an enterprise zone designated by the United States government under 42 U.S.C. §§ 11501 through 11505; (6) those areas of the State located between Interstate Highway 495 and the District of Columbia; (7) those areas of the State located between Interstate Highway 695 and Baltimore City; (8) any area in a county designated by the county as a priority funding area under § 5–7B–03(c) of the State Finance and Procurement Article; (9) that portion of the Port Land Use Development Zone, as defined in § 6–501 of the Transportation Article, that has been designated as an area appropriate for growth in a county comprehensive master plan; and (10) a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.

Md. Code, Economic Development § 6-302

The General Assembly intends that the purpose of the job creation tax credit authorized under this subtitle is to increase the number of new jobs in the State by encouraging: (1) the expansion of existing private sector enterprises; and (2) the establishment or attraction of new private sector enterprises.

Md. Code, Economic Development § 6-303

(a) (1) The Secretary or the Secretary’s designee shall certify a person as a qualified business entity if the person meets the requirements of this section. (2) A person may not be certified as a qualified business entity under subsection (b)(1) of this section unless the person notifies the Department of its intent to seek certification before hiring any qualified employees to fill the qualified positions necessary to meet the requirements of subsection (b)(1)(i) of this section. (b) To be eligible for a tax credit under this subtitle: (1) a person shall establish or expand a business facility in the State that: (i) during any 24–month period creates at least: 1. 60 qualified positions; 2. 25 qualified positions if the business facility established or expanded is located in a State priority funding area; or 3. 10 qualified positions in a county with: A. an annual average employment that is less than 75,000; or B. a median household income that is less than two–thirds of the statewide median household income; and (ii) is primarily engaged in: 1. manufacturing or mining; 2. transportation or communications; 3. agriculture, forestry, or fishing; 4. research, development, or testing; 5. biotechnology; 6. computer programming, information technology, or other computer–related services; 7. central services for a business entity engaged in financial services, real estate services, or insurance services; 8. the operation of central administrative offices; 9. the operation of a company headquarters other than the headquarters of a professional sports organization; 10. the operation of a public utility; 11. warehousing; 12. business services, if the business facility established or expanded is located in a State priority funding area; 13. entertainment, recreation, cultural, or tourism–related activities in a multi–use facility located within a revitalization area if the facility: A. generates a minimum of 1,000 new full–time equivalent filled positions in a 24–month period; and B. is not primarily used by a professional sports franchise or for gaming; or 14. the growth, processing, or dispensing of cannabis in accordance with the laws of the State; or (2) a small business shall hire at least one qualified veteran employee for a full–time position in the State. (c) (1) To be certified as a qualified business entity for a tax credit under subsection (b)(1) of this section, a person shall submit to the Department an application that specifies: (i) the effective date of the start–up or expansion; (ii) the number of full–time employees existing before the start–up or expansion and the payroll of the existing employees; (iii) the number of qualified positions created and qualified employees hired and the payroll of the new qualified employees; and (iv) any other information that the Department requires by regulation. (2) To be certified as a qualified business entity for a tax credit under subsection (b)(2) of this section, a small business shall submit to the Department an application that specifies: (i) the name of the small business; (ii) information identifying the name and date of hire of the qualified veteran employee; (iii) proof of the wages paid to the qualified veteran employee; and (iv) any other information that the Department requires by regulation. (d) When determining whether a business facility is engaged in a qualifying activity described in subsection (b)(1)(ii) of this section, the Department shall consider the definitions set forth in the North American Industry Classification System. (e) The Department may require that any information provided under subsection (c) of this section be verified by the Maryland Department of Labor.

Md. Code, Economic Development § 6-304

(a) (1) A qualified business entity may claim a tax credit in the amount determined under this section. (2) The Department shall certify the amount of the tax credit for which a qualified business entity is eligible under this section. (3) The qualified business entity shall submit to the appropriate State units, with the tax return on which the credit is claimed, certification from the Department that the business entity has met the requirements of this subtitle and is eligible for the credit in the amount certified by the Department. (b) (1) Except as provided in this section, the credit earned under this section by a qualified business entity under § 6–303(b)(1) of this subtitle: (i) for qualified employees who are not qualified veteran employees working in a facility not located in a revitalization area, is $3,000 multiplied by the number of those qualified employees employed by the qualified business entity during the credit year; (ii) for qualified employees who are not qualified veteran employees working in a facility located in a revitalization area, is $5,000 multiplied by the number of those qualified employees employed by the qualified business entity during the credit year; (iii) for qualified employees who are qualified veteran employees working in a facility not located in a revitalization area, is $4,000 multiplied by the number of qualified veteran employees employed by the qualified business entity during the credit year; and (iv) for qualified employees who are qualified veteran employees working in a facility located in a revitalization area, is $6,000 multiplied by the number of qualified veteran employees employed by the qualified business entity during the credit year. (2) (i) Except as provided in this section and subject to subparagraph (ii) of this paragraph, the credit earned under this section by a small business under § 6–303(b)(2) of this subtitle is $2,500 multiplied by the number of qualified veteran employees employed by the small business during the credit year. (ii) A small business may not claim the credit under this section: 1. for more than five qualified veteran employees in a credit year; 2. for a qualified veteran employee who is hired to replace a laid–off employee or an employee who is on strike; or 3. for a qualified veteran employee who has filled the position for less than 1 year. (3) The credit earned by a qualified business entity under this subtitle may not exceed $1,000,000 for any credit year. (4) The total amount of credits certified by the Department for qualified business entities in a taxable year may not exceed $4,000,000. (c) (1) The same credit cannot be applied more than once against different taxes by the same taxpayer. (2) If the credit allowed under this subtitle exceeds the total tax otherwise due from a qualified business entity in a taxable year, the qualified business entity may apply the excess as a credit for succeeding taxable years until the earlier of: (i) the full amount of the excess is used; or (ii) the expiration of the 5th taxable year from the credit year. (3) The credit under this subtitle may not be carried back to a preceding taxable year.

Md. Code, Economic Development § 6-305

(a) The provisions of this section do not apply to a tax credit claimed by a small business under § 6–303(b)(2) of this subtitle. (b) If, during any of the 3 years after the credit year, the number of qualified positions of the qualified business entity falls more than 5% below the average number of qualified positions that existed during the credit year on which the credit was computed, the credit shall be recaptured as follows: (1) the credit shall be recomputed and reduced by the percentage reduction of the number of qualified employees; (2) the recomputed credit shall be subtracted from the amount of credit previously allowed; and (3) the qualified business entity shall pay the difference as taxes payable to the State for the taxable year in which the number of qualified positions falls more than 5% below the average number of qualified positions during the credit year. (c) If, during any of the 3 years after the credit year, the average number of qualified positions falls below the applicable threshold number of positions required under § 6–303(b)(1) of this subtitle, all credits earned shall be recaptured. (d) During the 3 taxable years after the credit year, a qualified business entity shall provide any information required by the Department in regulation to verify that the qualified business entity is not subject to subsection (b) or (c) of this section.

Md. Code, Economic Development § 6-306

(a) The Comptroller or other appropriate unit shall share with the Department any information received from a qualified business entity about eligibility for a credit allowed under this subtitle. (b) Information that is received under subsection (a) of this section is subject to the confidentiality requirements established by statute or regulation that apply to the Comptroller or unit that receives the information.

Md. Code, Economic Development § 6-307

(a) In accordance with § 2.5–109 of this article, the Department shall submit a report on the job creation tax credits authorized under this subtitle. (b) In accordance with § 2–110 of the Insurance Article, the Maryland Insurance Commissioner shall submit a report on: (1) each insurer claiming the credit against the insurance premium tax under § 6–114 of the Insurance Article; (2) the total amount of credits claimed by insurers under § 6–114 of the Insurance Article; and (3) the number of insurers claiming the credit.

Md. Code, Economic Development § 6-308

(a) Except as otherwise provided in this section, the Secretary shall adopt regulations to carry out this subtitle. (b) The Comptroller shall adopt regulations to provide for the computation, carryover, and recapture of the credit under § 10-704.4 of the Tax - General Article. (c) The State Department of Assessments and Taxation shall adopt regulations to provide for the computation, carryover, and recapture of the credit under §§ 8-214 and 8-411 of the Tax - General Article. (d) The Insurance Commissioner shall adopt regulations to provide for the computation, carryover, and recapture of the credit under § 6-114 of the Insurance Article.

Md. Code, Economic Development § 6-309

(a) Subject to subsection (b) of this section, this subtitle and the tax credit authorized under it shall terminate on January 1, 2027. (b) After termination of this subtitle: (1) a business entity may be considered for eligibility for the tax credit authorized under this subtitle based on positions filled before termination of this subtitle, provided that the other requirements of the subtitle are satisfied; and (2) tax credits earned may be carried forward and are subject to recapture in accordance with § 6–305 of this subtitle.

Md. Code, Economic Development § 6-401

(a) In this subtitle the following words have the meanings indicated. (b) “Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle. (c) “Eligible economic development project” means an economic development project that: (1) establishes or expands a business facility within a Tier I county; and (2) is approved for a project tax credit in accordance with this subtitle. (d) (1) “Eligible project cost” means the cost and expense a qualified business entity incurs to acquire, construct, rehabilitate, install, or equip an eligible economic development project. (2) “Eligible project cost” includes: (i) the cost of: 1. obligations for labor and payments made to contractors, subcontractors, builders, and suppliers; 2. acquiring land, rights in land, and costs incidental to acquiring land or rights in land; 3. contract bonds and insurance needed during the acquisition, construction, or installation of the project; 4. test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services; 5. performing duties required by or consequent to the acquisition, construction, and installation of the project; 6. installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities; and 7. bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities; (ii) the interest cost before and during the acquisition, construction, installation, and equipping of the project, and for up to 2 years after project completion; (iii) legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project; and (iv) a qualified business entity’s cost to furnish and equip a new location for ordinary business functions, including: 1. the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment; and 2. expenditures for moving costs, separation costs, and other costs directly related to moving from outside of the State to a location in a Tier I county. (e) “Project tax credit” means a tax credit for eligible project costs allowed under § 6–403 of this subtitle. (f) “Qualified business entity” means a person that: (1) (i) conducts or operates a trade or business in the State; or (ii) operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and (2) is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle. (g) (1) “Qualified position” means a position that: (i) is a full–time position and is of indefinite duration; (ii) pays at least 120% of the State minimum wage; (iii) is in a Tier I county; (iv) is newly created because a business facility begins or expands in one location in a Tier I county; and (v) is filled. (2) “Qualified position” does not include a position that is: (i) created when an employment function is shifted from an existing business facility of a business entity in the State to another business facility of the same business entity if the position is not a net new job in the State; (ii) created through a change in ownership of a trade or business; (iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State; (iv) created when an employment function is contractually shifted from an existing business entity in the State to another business entity if the position is not a net new job in the State; or (v) filled for a period of less than 12 months. (h) (1) “Tier I county” means a county with: (i) an average rate of unemployment for the most recent 24–month period for which data are available that exceeds 150% of the average rate of unemployment for the State during that period; (ii) an average rate of unemployment for the most recent 24–month period for which data are available that exceeds the average rate of unemployment for the State by at least 2 percentage points; or (iii) a median household income for the most recent 24–month period for which data are available that is equal to or less than 75% of the median household income for the State during that period. (2) “Tier I county” includes a county that: (i) no longer meets any of the criteria stated in paragraph (1) of this subsection; but (ii) has met at least one of the criteria at some time during the preceding 24–month period.

Md. Code, Economic Development § 6-402

(a) (1) To qualify for a project tax credit, a person shall be certified by the Secretary as meeting the requirements of this subtitle and as being eligible for the tax credit. (2) The Secretary may not certify a person as a qualified business entity unless the person notifies the Department of its intent to seek certification before hiring any qualified employees to fill the qualified positions necessary to satisfy the employment threshold under subsection (b)(2) of this section. (b) To be eligible for a project tax credit, a person shall: (1) establish or expand a business facility that: (i) is located in a Tier I county; and (ii) 1. A. is located in a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or B. is eligible for funding outside of a priority funding area under § 5–7B–05 or § 5–7B–06 of the State Finance and Procurement Article; or 2. is located in a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County; (2) during any 24–month period, create at least the number of qualified positions at the new or expanded business facility specified in § 6–403(b) of this subtitle; and (3) be primarily engaged at the new or expanded business facility in any combination of: (i) manufacturing or mining; (ii) transportation or communications; (iii) filmmaking, resort business, or recreational business; (iv) agriculture, forestry, or fishing; (v) research, development, or testing; (vi) biotechnology; (vii) computer programming, information technology, or other computer–related services; (viii) central services for a business entity engaged in financial services, real estate services, or insurance services; (ix) the operation of central administrative offices; (x) the operation of a company headquarters other than the headquarters of a professional sports organization; (xi) the operation of a public utility; (xii) warehousing; (xiii) other business services; or (xiv) the growth, processing, or dispensing of cannabis in accordance with the laws of the State. (c) To be certified as a qualified business entity for a project tax credit, a person shall submit to the Secretary an application that specifies: (1) the effective date of the start–up or expansion; (2) the number of full–time employees before the start–up or expansion and the payroll of the existing employees; (3) the number of qualified positions created and qualified employees hired and the payroll of the new qualified employees; and (4) any other information that the Secretary requires by regulation. (d) The Secretary may require any information required under this section to be verified by an independent auditor that the qualified business entity selects.

Md. Code, Economic Development § 6-403

(a) (1) A qualified business entity may claim a project tax credit for the cost of an eligible economic development project in a Tier I county if the total eligible project cost for the eligible economic development project is at least $500,000. (2) A qualified business entity is not entitled to a project tax credit for a cost incurred before notifying the Department of its intent to seek certification as qualifying for the project tax credit. (b) (1) (i) Subject to the limitation in paragraph (2) of this subsection, the project tax credit allowed under this section is the lesser of the maximum amount specified in subparagraph (ii) of this paragraph and the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years. (ii) For purposes of calculation of the credit under subparagraph (i) of this paragraph, the maximum amount is: 1. $5,000,000, if the qualified business entity creates at least 50 qualified positions; 2. $2,500,000, if the qualified business entity creates at least 25 qualified positions but fewer than 50 qualified positions; or 3. $1,000,000, if the qualified business entity creates at least 10 qualified positions but fewer than 25 qualified positions. (2) Except as provided in subsections (d) and (e) of this section, the project tax credit allowed in a taxable year may not exceed the State tax for that year on the qualified business entity’s income. (3) The Department shall certify the amount of the project tax credit for which a qualified business entity is eligible. (4) (i) A qualified business entity shall report to the Department the amount of the project tax credit that the entity claims on the entity’s tax return for each taxable year that the entity claims any portion of the project tax credit. (ii) The failure of the qualified business entity to provide the information required under subparagraph (i) of this paragraph shall disqualify the entity from claiming any unclaimed amount of the project tax credit. (c) A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may claim the project tax credit against the insurance premium tax. (d) (1) Subject to paragraph (2) of this subsection, if the eligible project cost for the eligible economic development project exceeds the State tax on the qualified business entity’s income, the qualified business entity may apply any excess as a project tax credit for succeeding taxable years against the State tax on the qualified business entity’s income until the earlier of: (i) the full amount of the excess is used; or (ii) the expiration of the 10th taxable year following the credit year. (2) (i) A qualified business entity may claim a prorated share of the credit under this subsection if: 1. during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and 2. the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years. (ii) The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit. (e) (1) Subject to the limitation in paragraph (4) of this subsection, this subsection applies to any taxable year after the 4th credit year. (2) A qualified business entity other than a person subject to taxation under Title 6 of the Insurance Article may claim a refund in the amount, if any, by which the qualified business entity’s unused excess exceeds the State tax for the taxable year. (3) A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may: (i) apply any excess of eligible project costs for the eligible economic development project over the cumulative amount used as a project tax credit for the taxable year and all prior taxable years as a tax credit against the premium tax imposed for the taxable year; and (ii) claim a refund in the amount, if any, by which the unused excess exceeds the premium tax for the taxable year. (4) For any taxable year, the total amount claimed as a refund under this subsection may not exceed the amount of tax that the qualified business entity is required to withhold for the taxable year from the wages of qualified employees under § 10–908 of the Tax – General Article. (5) (i) A qualified business entity may claim a prorated share of the credit under this subsection if: 1. during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and 2. the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years. (ii) The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit. (f) A qualified business entity shall attach the certification required under § 6–402 of this subtitle to the tax return on which the project tax credit is claimed.

Md. Code, Economic Development § 6-404

A refund payable to a qualified business entity under § 6–403(e) of this subtitle reduces: (1) the income tax revenue from corporations if the qualified business entity is a corporation subject to the income tax under Title 10 of the Tax – General Article; (2) the income tax revenue from individuals if the qualified business entity is: (i) an individual subject to the income tax under Title 10 of the Tax – General Article; or (ii) an organization exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and (3) insurance premium tax revenues if the qualified business entity is subject to taxation under Title 6 of the Insurance Article.

Md. Code, Economic Development § 6-405

For any taxable year, if a qualified business entity claims the project tax credit authorized under this subtitle, the qualified business entity may not also claim a credit authorized under Subtitle 3 of this title.

Md. Code, Economic Development § 6-601

(a) In this subtitle the following words have the meanings indicated. (b) “Authority” means the Maryland E–Nnovation Initiative Fund Authority established under § 6–605 of this subtitle. (c) “Endowment proceeds” means those investment earnings accruing to a research endowment of a nonprofit institution of higher education and available for expenditure by the institution in accordance with § 6–612 of this subtitle. (d) “Fund” means the Maryland E–Nnovation Initiative Fund created under § 6–604 of this subtitle. (e) “Governing board” has the meaning stated in § 10–101 of the Education Article. (f) “Governing body” means: (1) a governing board; (2) the governing entity of a private nonprofit institution of higher education; or (3) the governing entity of a regional higher education center. (g) (1) “Nonprofit institution of higher education” means an institution of postsecondary education located in the State, that receives State funds in the annual operating budget and that generally limits enrollment to graduates of secondary schools and awards degrees at either the associate, baccalaureate, or graduate level. (2) “Nonprofit institution of higher education” includes public and private nonprofit institutions of higher education located in the State. (h) “Private nonprofit institution of higher education” has the meaning stated in § 10–101 of the Education Article. (i) “Program” means the Maryland E–Nnovation Initiative Program under this subtitle. (j) “Qualified donation” means any private donation, gift, irrevocable pledge, or bequest to a research endowment in accordance with § 6–613 of this subtitle. (k) “Regional higher education center” has the meaning stated in § 10–101 of the Education Article. (l) “Research endowment” means an account established at or administered by a nonprofit institution of higher education in accordance with § 6–612 of this subtitle.

Md. Code, Economic Development § 6-604

(a) There is a Maryland E–Nnovation Initiative Fund in the Department. (b) The Secretary shall manage and supervise the Fund. (c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. (d) The Fund consists of: (1) revenue distributed to the Fund under § 2–202(a)(1) of the Tax – General Article; (2) money appropriated in the State budget to the Fund; and (3) any other money from any other source accepted for the benefit of the Fund. (e) For each of fiscal years 2016 through 2026, the Governor shall include in the budget bill an appropriation to the Fund in an amount that when combined with the amount estimated to be distributed to the Fund under subsection (d)(1) of this section equals at least $8,500,000. (f) The Department may use the Fund to: (1) finance research endowments at nonprofit institutions of higher education in scientific and technical fields of study; and (2) pay the related administrative, legal, and actuarial expenses of the Department. (g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. (2) Any investment earnings of the Fund shall be credited to the Fund. (h) Expenditures from the Fund may be made only in accordance with the State budget.

Md. Code, Economic Development § 6-606

The Authority consists of: (1) the Chief Executive Officer of the Maryland Technology Development Corporation, or the Chief Executive Officer’s designee; (2) the Executive Vice President of the Maryland Technology Development Corporation, or the Executive Vice President’s designee; (3) the Secretary of Commerce, or the Secretary’s designee; (4) the Managing Director of the Maryland Venture Fund, or the Managing Director’s designee; (5) the Chancellor of the University System of Maryland, or the Chancellor’s designee; and (6) two individuals from the private sector not affiliated with higher education appointed by the President of the Senate and the Speaker of the House to the Maryland Innovation Initiative under § 10–455 of this article.

Md. Code, Economic Development § 6-607

(a) The chair of the Authority shall be chosen by the members of the Authority. (b) The Authority shall determine the manner of election of officers and their terms of office.

Md. Code, Economic Development § 6-608

(a) (1) Four members of the Authority are a quorum. (2) An act of the Authority shall be approved by a majority vote of the members attending a meeting at which a quorum is present. (b) A member of the Authority: (1) may not receive compensation as a member of the Authority; but (2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

Md. Code, Economic Development § 6-612

(a) The governing body of each nonprofit institution of higher education may create and administer one or more research endowments to receive funding from the Fund. (b) A research endowment consists of funds distributed by the Authority from the Fund in accordance with § 6–618 of this subtitle and qualified donations. (c) (1) The governing body of a nonprofit institution of higher education may invest funds deposited into the research endowment in a manner consistent with other institutional endowments managed by the institution. (2) Any interest or other investment earnings on the funds invested are retained by the nonprofit institution of higher education to be used for the purposes set forth in this subtitle. (d) Investment earnings accruing to the research endowment of a nonprofit institution of higher education may be expended by the governing body of the institution only for the eligible uses under § 6–614 of this subtitle. (e) The governing body of a nonprofit institution of higher education is exempt from liability for any loss or decrease in value of the assets or income of a research endowment, unless the losses or decreases in value result from bad faith, gross negligence, or intentional misconduct. (f) The governing body of a nonprofit institution of higher education shall issue rules for the administration of research endowments that fulfill the purposes and requirements of this subtitle.

Md. Code, Economic Development § 6-613

(a) Private donations to a research endowment shall be considered a qualified donation if: (1) the donation or pledge is expressly or specifically restricted by the donor for one or more of the eligible uses under § 6–614 of this subtitle; (2) (i) except as provided in item (ii) of this item, the individual donation or pledge is a minimum of $500,000 or is bundled with other qualified donations to meet the $500,000 threshold; or (ii) for an individual donation or pledge made to a research endowment of a nonprofit institution of higher education that has an annual unrestricted current funds budget of less than $250,000,000, the individual donation or pledge is a minimum of $200,000 or is bundled with other qualified donations to meet the $200,000 threshold; and (3) the nonprofit institution of higher education accepts the donation from individuals, partnerships, associations, public or private for–profit and nonprofit corporations, or nongovernmental foundations. (b) Notwithstanding subsection (a) of this section, a nonprofit institution of higher education may designate unrestricted gifts or bequests, or a portion of an unrestricted gift or bequest, for use as a qualified donation. (c) A qualified donation excludes: (1) any donation received by a nonprofit institution of higher education prior to October 1, 2014; (2) educational or general fees, auxiliary fees, or other student fees generated by the institution; (3) proceeds from promissory notes, bonds, loans, or other instruments evidencing an indebtedness or any other obligation of repayment by the governing body of a nonprofit institution of higher education to the maker of the instrument; or (4) any other funds received from the State or federal government. (d) (1) The president of each nonprofit institution of higher education or the president’s designee shall make the initial determination of whether a donation constitutes a qualified donation. (2) The president of the nonprofit institution of higher education shall provide a report to the governing body of the institution at least once each fiscal year regarding the amount of qualified donations the institution has received.

Md. Code, Economic Development § 6-614

(a) Endowment proceeds shall be expended by a nonprofit institution of higher education to further basic and applied research in scientific and technical fields of study as designated by the Authority that offer promising and significant economic impacts and the opportunity to develop clusters of technological innovation in the State, including: (1) physical sciences; (2) life and neuro sciences; (3) engineering; (4) mathematical and computational sciences; (5) regulatory science; (6) autonomous systems; (7) aeronautical and space science; (8) environmental sciences; (9) behavioral and language science; (10) health sciences; (11) agriculture; or (12) cybersecurity. (b) Endowment proceeds may be expended by a nonprofit institution of higher education for: (1) the payment of the base salaries of newly endowed department chairs, new professorship positions, new research scientists, or new research staff positions, including research technicians and support personnel, and to fund affiliated graduate or undergraduate student research fellowships, if the positions or fellowships are engaged in the areas of research identified in subsection (a) of this section; or (2) the purchase of basic infrastructure, including laboratory and scientific equipment or other essential equipment and materials, related to an area of research identified in subsection (a) of this section. (c) An individual in a position that is funded by endowment proceeds under subsection (b)(1) of this section shall: (1) work at least 20% of the year in support of a federal laboratory or associated federal laboratory research support organization; (2) hold a joint appointment or secondary position at another nonprofit institution of higher education in the State; or (3) work at least 20% of the year in support of entrepreneurial activities with a company engaged in one or more of the research areas identified in subsection (a) of this section. (d) The Authority shall issue eligibility criteria regarding the expenditure of endowment proceeds to pay the base salaries of personnel, fund student fellowships, and purchase basic infrastructure.

Md. Code, Economic Development § 6-615

(a) The governing body of each nonprofit institution of higher education shall submit a research endowment plan to the Authority prior to submitting its first request for a distribution of matching funds from the Fund. (b) The research plan shall include: (1) any information requested by the Authority to ensure compliance with the requirements of this subtitle; and (2) a demonstration of interest from qualified private donors to meet the criteria established by the Authority.

Md. Code, Economic Development § 6-618

(a) Except as provided in § 6–619 of this subtitle, the Authority shall make available no more than 25% of cumulative program funds from the Fund to a single nonprofit institution of higher education to match qualified donations. (b) A nonprofit institution of higher education seeking a distribution of matching funds from the Fund shall first obtain qualified donations in an amount equal to the amount of matching funds requested for distribution and shall submit a request to the Authority. (c) The request shall include: (1) the amount requested for distribution to the nonprofit institution of higher education in accordance with subsection (a) of this section; (2) the amount of qualified donations designated for use in requesting the distribution of matching funds from the Fund; (3) an explanation of how the proposed use satisfies the criteria for eligible uses of endowment proceeds under § 6–614 of this subtitle; (4) an explanation of how the proposed use of the endowment proceeds furthers the purposes of this subtitle and addresses the research needs of the institution as identified in the research plan; and (5) a designation of the applicable research endowment into which the requested matching funds are to be deposited. (d) The Authority shall review each request for distribution of matching funds from the Fund for compliance with the provisions of this subtitle and Department regulations. (e) If the Authority approves the request of a nonprofit institution of higher education, the Authority shall distribute matching funds to the applicable research endowment in an amount equal to the amount of qualified donations.

Md. Code, Economic Development § 6-619

(a) Within 90 days after approval by the Authority of a request for matching funds under § 6–618 of this subtitle, each nonprofit institution of higher education shall deposit an amount of qualified donations equal to or greater than the total amount of funds allocated for distribution to the nonprofit institution of higher education in accordance with § 6–618 of this subtitle. (b) If a nonprofit institution of higher education fails to have deposited into its research endowments the required amount of qualified donations as required under subsection (a) of this section, any portion of the funds allocated to the institution that has not been distributed shall be reallocated to another nonprofit institution of higher education in accordance with this subtitle. (c) (1) This subsection applies to a nonprofit institution of higher education that anticipates that the institution will not receive the entire amount of a qualified donation on which the institution intends to rely for purposes of requesting matching funds from the Authority before the end of the fiscal year in which the research endowment plan is approved. (2) Except for the type of funds set forth in § 6–613(c)(2), (3), and (4) of this subtitle, a nonprofit institution of higher education may deposit available funds from other sources within the nonprofit institution of higher education into the research endowment for purposes of satisfying the 90–day deposit requirement in subsection (a) of this section if the nonprofit institution of higher education has disclosed the following information in the research endowment plan approved by the Authority: (i) the intent of the nonprofit institution of higher education to rely on the other funds; (ii) the source of the other funds; and (iii) other information the Authority may have requested regarding other funds at the time of its consideration of the approved research endowment plan. (d) If the Authority fails to allocate the funds in the Fund under this subtitle and a nonprofit institution of higher education has previously received 25% of cumulative program funds from the Fund, the Authority may distribute additional funds to the nonprofit institution in accordance with this subtitle.

Md. Code, Economic Development § 6-623

(a) (1) On or before January 1, 2016, and January 1 of each subsequent year, the Department shall submit a report on the implementation of the Program to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee and the House Ways and Means Committee. (2) The Department shall publish the report on the Department’s website in a publicly available format. (3) The report published on the website may not include any proprietary or confidential information. (b) The report shall include, with respect to each nonprofit institution of higher education that has received an allocation of funds from the Fund: (1) the name and address of the institution; (2) the names of the individuals making decisions on behalf of the institution regarding expenditure of the funds allocated; (3) the amount of funds received during the previous fiscal year; (4) the cumulative amount of funds received; and (5) the amount of funds remaining unspent at the end of the previous fiscal year.

Md. Code, Economic Development § 6-801

(a) In this subtitle the following words have the meanings indicated. (b) “Benefit year” means a taxable year in which a qualified business entity claims a program benefit established under § 6–805 of this subtitle. (c) (1) “Business entity” means a person conducting or operating a trade or business that is: (i) primarily engaged in activities that, in accordance with the North American Industrial Classification System (NAICS), United States Manual, United States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, or 33; or (ii) located in an opportunity zone. (2) “Business entity” does not include: (i) a refiner, as defined in § 10–101 of the Business Regulation Article; (ii) a person conducting or operating a trade or business that is: 1. providing adult entertainment, as determined by the Department; 2. primarily engaged in retail activities, unless the person is operating a grocery store located in an opportunity zone; or 3. primarily engaged in the sale or distribution of alcoholic beverages; or (iii) the following entities: 1. a private or commercial golf course or country club; 2. a tanning salon; or 3. a bail bondsman. (d) “Eligible project” means a facility operated by a business entity in a Tier I area or Tier II area. (e) “Existing business entity” means a business entity that is located in the State at the time it notifies the Department under § 6–803(c) of this subtitle. (f) “Grocery store” has the meaning stated in § 9–254 of the Tax – Property Article. (g) “New business entity” means a business entity that is not located in the State at the time it notifies the Department under § 6–803(b) of this subtitle. (h) “Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code. (i) “Program” means the More Jobs for Marylanders Program established under this subtitle. (j) “Qualified business entity” means a new business entity or an existing business entity operating an eligible project under this subtitle. (k) (1) “Qualified position” means a position that: (i) is full–time and of indefinite duration; (ii) 1. except as provided in item 2 of this item, for a position in a facility that is located in an opportunity zone, pays an average annual salary that exceeds $50,000; or 2. A. for a position in a facility of a business entity described under subsection (c)(1)(i) of this section that is provided a certificate under § 6–805 of this subtitle before June 1, 2022, pays at least 120% of the State minimum wage; or B. for a position in a facility of a business entity described under subsection (c)(1)(i) of this section that is provided a certificate under § 6–805 of this subtitle on or after June 1, 2022, pays at least 150% of the State minimum wage; (iii) is located in a facility; (iv) is newly created at a single facility in the State; and (v) is filled. (2) “Qualified position” does not include a position that is: (i) created when an employment function is shifted from an existing facility of a business entity in the State to another facility of the same business entity if the position is not a net new job in the State; (ii) created through a change in ownership of a trade or business; (iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State; (iv) created when an employment function is contractually shifted from an existing business entity to another business entity in the State if the position is not a net new job in the State; or (v) filled for a period of less than 12 months. (l) “Tier I area” means: (1) a Tier I county, as defined in § 1–101 of this article; (2) a county designated by the Department that is not a county described in item (1) of this subsection, not to exceed three counties; or (3) an opportunity zone. (m) “Tier II area” means an area that is not an area described in subsection (l) of this section.

Md. Code, Economic Development § 6-802

(a) There is a More Jobs for Marylanders Program in the Department. (b) The purpose of the Program is to: (1) incentivize the creation of new manufacturing jobs in the State; and (2) attract new businesses to and encourage the expansion of existing businesses within opportunity zones.

Md. Code, Economic Development § 6-803

(a) A business entity may apply to the Department to enroll an eligible project in the Program if the eligible project: (1) is in a Tier I area and the business entity intends: (i) with respect to notice provided under this section to the Department before June 1, 2022, to create at least five qualified positions at the project location; or (ii) with respect to notice provided under this section to the Department on or after June 1, 2022, to create at least 10 qualified positions at the project location; or (2) is in a Tier II area and the business entity intends: (i) with respect to notice provided under this section to the Department before June 1, 2022, to create at least 10 qualified positions at the project location; or (ii) with respect to notice provided under this section to the Department on or after June 1, 2022, to create at least 20 qualified positions at the project location. (a–1) (1) The Department may not refuse to certify a business entity conducting a trade or a business as a medical cannabis grower, processor, or dispensary or any other cannabis establishment licensed by the State solely because the business entity is a cannabis establishment, if the business entity otherwise satisfies the requirements of this subtitle. (2) If, before July 1, 2023, a business entity described under paragraph (1) of this subsection was denied certification under this subtitle solely because the business entity was a cannabis establishment, the business entity may reapply to the Department for certification. (b) (1) A new business entity may not be certified as a qualified business entity unless the new business entity: (i) notifies the Department of its intent to seek designation of an eligible project before establishing its facility in the State; and (ii) offers an ongoing job skills enhancement training program or postsecondary education program that is approved by the Department. (2) The Department may certify a new business entity as a qualified business entity after the new business entity provides the required notice under paragraph (1)(i) of this subsection, applies to the Department under paragraph (3) of this subsection, and establishes and operates an eligible project. (3) A new business entity shall submit to the Department an application containing at least the following information: (i) the anticipated date of the establishment and initial operation of the facility and the nature of its operations; (ii) the expected location of the facility; (iii) the estimated number of qualified positions to be created and qualified employees to be hired and the anticipated payroll of the new qualified employees; and (iv) any other information the Department requires. (c) (1) An existing business entity may apply to be certified as a qualified business entity if the existing business entity increases the number of qualified positions as required under subsection (a) of this section for an eligible project in a Tier I area or a Tier II area. (2) An existing business entity may not be certified as a qualified business entity unless the business entity: (i) notifies the Department of its intent to seek designation of an eligible project prior to hiring any employees to fill the qualified positions necessary to meet the requirements of this subtitle; and (ii) offers an ongoing job skills enhancement training program or postsecondary education program that is approved by the Department. (3) An existing business entity shall submit an application to the Department containing at least the following information: (i) the number of full–time employees existing before the expansion and the payroll of the existing employees; (ii) the estimated number of qualified positions to be created and qualified employees to be hired and the anticipated payroll of the new qualified employees; and (iii) any other information that the Department requires. (d) A business entity must begin hiring the employees to fill the qualified positions necessary to meet the requirements of this subtitle within 12 months after it notifies the Department of its intent to seek designation of an eligible project.

Md. Code, Economic Development § 6-804

(a) (1) Except as provided in paragraph (2) of this subsection, the Program benefits authorized under this section may be claimed by a qualified business entity for up to 10 consecutive benefit years. (2) In the case of a qualified business entity that is located in a Tier II area and is provided a certificate under § 6–805 of this subtitle on or after June 1, 2022, the Program benefits authorized under this section may be claimed by the qualified business entity for up to 5 consecutive benefit years. (b) On enrollment in the Program: (1) a new business entity in a Tier I area that is provided a certificate under § 6–805 of this subtitle before June 1, 2022, is eligible for: (i) a credit against the State income tax, established under § 10–741(b) of the Tax – General Article; (ii) a credit against the State property tax, established under § 9–110 of the Tax – Property Article; (iii) a refund of sales and use tax paid during the immediately preceding taxable year, as provided under § 11–411 of the Tax – General Article; and (iv) a waiver of fees charged by the State Department of Assessments and Taxation, established under § 1–203.1 of the Corporations and Associations Article; and (2) except as provided in subsection (c) of this section, a new business entity not described under item (1) of this subsection or an existing business entity that operates an eligible project is eligible for a credit against the State income tax, established under § 10–741(b) of the Tax – General Article. (c) The income tax credit established under § 10–741(b) of the Tax – General Article is not available to an existing business entity if the entity moves its facility to another county in the State on or after June 1, 2017. (d) If the number of qualified positions at the eligible project decreases to a number less than the number established in the first benefit year, the project shall be removed from the Program and all program benefits terminate.

Md. Code, Economic Development § 6-805

(a) The Department shall provide to a qualified business entity a certificate that: (1) certifies the eligible project that is enrolled in the Program; (2) provides the duration of the certification; and (3) provides any additional information necessary for the Comptroller and Department to administer the Program. (b) (1) For a qualified business entity that has submitted the notice required under § 6–803(b)(1)(i) or (c)(2)(i) of this subtitle before June 1, 2022, the Department may not provide the qualified business entity a certificate on or after June 1, 2022. (2) For a qualified business entity that has submitted the notice required under § 6–803(b)(1)(i) or (c)(2)(i) of this subtitle on or after June 1, 2022, the Department may not provide the qualified business entity a certificate on or after June 1, 2024.

Md. Code, Economic Development § 6-806

(a) The Department may revoke its certification under this subtitle, in whole or in part, if any representation made by a qualified business entity is determined by the Department to have been false when made. (b) If the Department revokes its certification as provided under subsection (a) of this section, the Comptroller may make an assessment against the qualified business entity to recapture any amount of a tax credit or any other benefit that the qualified business entity has received.

Md. Code, Economic Development § 6-807

(a) The Department may require that any information provided under this subtitle be verified by an independent certified public accountant that the qualified business entity and the Department select. (b) (1) Acceptance by a qualified business entity of the Program benefits under this subtitle shall be deemed to authorize the Comptroller to share with the Department any information received from a qualified business entity about eligibility for a benefit allowed under this subtitle. (2) Information that is received by the Department or Comptroller under paragraph (1) of this subsection is subject to confidentiality requirements established by law.

Md. Code, Economic Development § 6-809

In accordance with § 2.5–109 of this article, the Department shall submit a report on the qualified business entities receiving final certification in the preceding fiscal year.

Md. Code, Economic Development § 6-1001

(a) In this subtitle the following words have the meanings indicated. (b) “Level 1 opportunity zone enhancement” means an enhanced tax credit under the Program for which a qualified opportunity zone business or qualified opportunity fund is eligible if: (1) the following information is provided to the Department: (i) the date of the qualified opportunity fund’s investment in the qualified opportunity zone business and the amount of the investment; (ii) the total project or business investment, including any leverage; (iii) the address and census tract of the qualified opportunity zone business and the qualified opportunity fund; (iv) the North American Industrial Classification System Code for the qualified opportunity zone business; (v) an impact report, including both qualitative and quantitative data on the investment and, as applicable, its progress toward: 1. creating and retaining jobs; 2. promoting entrepreneurship, including among women– and minority–owned businesses; 3. providing affordable housing; 4. creating access to healthy food; 5. promoting environmental sustainability; and 6. benefiting the communities in the opportunity zone in a manner not otherwise specified in this item; and (vi) unless an applicant provides an affidavit to the Department along with the application that the qualified opportunity zone business property is unoccupied, will be demolished within 1 year of the date of the application, and will remain unoccupied until the demolition is complete, with respect to qualified opportunity zone business property that is an affected property required to be registered with the Department of the Environment under § 6–811 of the Environment Article: 1. proof of registration with the Department of the Environment; 2. if the property contains at least one residential rental unit, proof of lead inspections conducted in accordance with §§ 6–815 and 6–819 of the Environment Article; 3. if the property is an owner–occupied residential rental property: A. proof that visual exterior or interior painted surfaces are free of chipping, flaking, or peeling lead–based paint; and B. a copy of passing test results for lead–contaminated dust; and 4. verification that, for the substantial improvement of the property performed in accordance with § 1400Z–2(d)(2)(D)(ii) of the Internal Revenue Code, replacement doors and windows are free of lead–based paint; and (vii) any other information requested by the Department that meets the transparency goals of the Program; and (2) for a qualified opportunity zone business located in an opportunity zone in a county with a minimum wage that exceeds the State minimum wage, the qualified opportunity zone business pays to each employee wages that exceed the greater of: (i) 120% of the State minimum wage; or (ii) 120% of the county minimum wage. (c) “Level 2 opportunity zone enhancement” means an enhanced tax credit under the Program for which a qualified opportunity zone business or qualified opportunity fund is eligible if: (1) the requirements for a Level 1 opportunity zone enhancement are met; (2) (i) accountability to residents of the communities in the opportunity zone is maintained through their representation on any governing board or advisory board of the qualified opportunity zone business; or (ii) a community benefits agreement is negotiated and agreed to by community groups or strategic industry partnerships, as defined under § 11–701 of the Labor and Employment Article, in the opportunity zone and the qualified opportunity fund that specifies a range of community benefits that the fund agrees to provide as part of the development project, including workforce development or local hiring requirements; and (3) (i) for a qualified opportunity zone business located entirely within an opportunity zone in a municipal corporation, the municipal corporation, by resolution or by letter, delivered to the Department by the municipal corporation’s authorized designee, approves the provision of the enhanced tax credits under the Program within the municipal corporation; or (ii) for a qualified opportunity zone business in an opportunity zone that is not located entirely within a municipal corporation, the county, by resolution or by letter, delivered to the Department by the county’s authorized designee, approves the provision of the enhanced tax credits under the Program within the county. (d) “Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code. (e) “Program” means the Opportunity Zone Enhancement Program in the Department established under § 6–1002 of this subtitle that allows enhanced tax credits under: (1) § 6–304 of this title (Job Creation); (2) § 6–403 of this title (One Maryland economic development); (3) § 10–702 of the Tax – General Article (wages paid in an enterprise zone); (4) § 10–725 of the Tax – General Article (biotechnology investment incentive); (5) § 10–733 of the Tax – General Article (cybersecurity investment incentive); and (6) § 10–741 of the Tax – General Article (More Jobs for Marylanders). (f) “Qualified opportunity fund” has the meaning stated in § 1400Z–2 of the Internal Revenue Code. (g) “Qualified opportunity zone business” has the meaning stated in § 1400Z–2 of the Internal Revenue Code. (h) “Qualified opportunity zone business property” has the meaning stated in § 1400Z–2 of the Internal Revenue Code. (i) “Qualified opportunity zone property” has the meaning stated in § 1400Z–2 of the Internal Revenue Code.

Md. Code, Economic Development § 6-1002

(a) There is an Opportunity Zone Enhancement Program in the Department. (b) (1) The Department shall administer the tax credit enhancements offered under the Program. (2) The enhancements offered under the Program shall be applicable to all taxable years beginning after December 31, 2018, but before January 1, 2027. (c) (1) The Department shall publish on its website information about the Program and information reported by a qualified opportunity fund receiving enhanced tax credits under the Program. (2) The information published on the website: (i) shall be itemized by qualified opportunity zone; (ii) shall be summarized in the aggregate; and (iii) may not include any proprietary or confidential information. (d) The Department, in consultation with the Department of Housing and Community Development, shall adopt regulations to carry out this subtitle, including criteria and procedures for determining eligibility for a Level 1 or Level 2 opportunity zone enhancement.

Md. Code, Economic Development § 6-1003

(a) In this section, “revitalization area” has the meaning stated in § 6–301 of this title. (b) For a qualified opportunity zone business that qualifies for a job creation tax credit under § 6–304 of this title: (1) the Level 1 opportunity zone enhancement is equal to: (i) $3,075 multiplied by the number of qualified employees working in a facility not located in a revitalization area; and (ii) $5,125 multiplied by the number of qualified employees working in a facility located in a revitalization area; and (2) the Level 2 opportunity zone enhancement is equal to: (i) $3,300 multiplied by the number of qualified employees working in a facility not located in a revitalization area; and (ii) $5,500 multiplied by the number of qualified employees working in a facility located in a revitalization area. (c) The enhanced multiplier authorized under subsection (b) of this section is in substitution for and not in addition to the multiplier under § 6–304(b)(1) of this title.

Md. Code, Economic Development § 6-1004

(a) In this section, “eligible economic development project”, “eligible project cost”, “project tax credit”, and “qualified position” have the meanings stated in § 6–401 of this title. (b) For a qualified opportunity zone business that qualifies for the One Maryland project tax credit under § 6–403 of this title and creates at least 50 qualified positions: (1) the Level 1 opportunity zone enhancement increases the maximum credit allowed under § 6–403(b)(1)(ii)1 of this title to the lesser of $5,125,000 or the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years; and (2) the Level 2 opportunity zone enhancement increases the maximum credit allowed under § 6–403(b)(1)(ii)1 of this title to the lesser of $5,500,000 or the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years.

Md. Code, Economic Development § 6-1005

(a) (1) In this section the following words have the meanings indicated. (2) “Economically disadvantaged individual”, “focus area employee”, and “qualified employee” have the meanings stated in § 10–702 of the Tax – General Article. (3) “Enterprise zone” and “focus area” have the meanings stated in § 5–701 of this article. (b) For a qualified opportunity zone business that qualifies for an income tax credit for wages paid in an enterprise zone under § 10–702(c) and (d) of the Tax – General Article: (1) the Level 1 opportunity zone enhancement is: (i) up to $1,025 of the wages paid to each qualified employee; and (ii) for wages paid to each qualified employee who is an economically disadvantaged individual, the credit allowed under § 10–702(c) and (d) is increased by 7.5% in each of the 3 taxable years in which the credit is claimed; and (2) the Level 2 opportunity zone enhancement is: (i) up to $1,200 of the wages paid to each qualified employee; and (ii) for wages paid to each qualified employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 10% in each of the 3 taxable years in which the credit is claimed. (c) For a qualified opportunity zone business that qualifies for an income tax credit for wages paid in a focus area under § 10–702(e) of the Tax – General Article: (1) the Level 1 opportunity zone enhancement is: (i) up to $1,540 of the wages paid to each focus area employee; and (ii) for wages paid to each focus area employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 7.5% in each of the 3 taxable years in which the credit is claimed; and (2) the Level 2 opportunity zone enhancement is: (i) up to $1,750 of the wages paid to each focus area employee; and (ii) for wages paid to each focus area employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 10% in each of the 3 taxable years in which the credit is claimed. (d) The enhanced multipliers authorized under subsections (b)(1)(i) and (2)(i) and (c)(1)(i) and (2)(i) of this section are in substitution for and not in addition to the multipliers under § 10–702(e) of the Tax – General Article.

Md. Code, Economic Development § 6-1006

(a) In this section, “investment”, “qualified investor”, and “qualified Maryland biotechnology company” have the meanings stated in § 10–725 of the Tax – General Article. (b) For a qualified opportunity fund that is a qualified investor in a qualified Maryland biotechnology company under § 10–725 of the Tax – General Article, if the qualified Maryland biotechnology company, on or after March 1, 2018, is newly established in or expands into an opportunity zone: (1) the Level 1 opportunity zone enhancement is 65% of the investment in a qualified Maryland biotechnology company in any county, not to exceed $575,000; and (2) the Level 2 opportunity zone enhancement is 75% of the investment in the qualified Maryland biotechnology company in any county, not to exceed $750,000. (c) The enhanced tax credit percentages and maximums authorized under subsection (b) of this section are in substitution for and not in addition to the percentages and maximums under § 10–725(d) of the Tax – General Article.

Md. Code, Economic Development § 6-1007

(a) In this section, “investment”, “qualified investor”, and “qualified Maryland technology company” have the meanings stated in § 10–733 of the Tax – General Article. (b) For a qualified opportunity fund that is a qualified investor in a qualified Maryland technology company under § 10–733 of the Tax – General Article, if the qualified Maryland technology company, on or after March 1, 2018, is newly established in or expands into an opportunity zone in a county other than Allegany County, Dorchester County, Garrett County, or Somerset County: (1) the Level 1 opportunity zone enhancement is 33% of the investment in a qualified Maryland technology company, not to exceed $300,000; and (2) the Level 2 opportunity zone enhancement is 50% of the investment in the qualified Maryland technology company, not to exceed $500,000. (c) The enhanced tax credit percentages and maximums authorized under subsection (b) of this section are in substitution for and not in addition to the percentages and maximums under § 10–733(d) of the Tax – General Article.

Md. Code, Economic Development § 6-1008

(a) In this section, “eligible project” and “qualified position” have the meanings stated in § 6–801 of this title. (b) For a qualified opportunity zone business that qualifies for a More Jobs for Marylanders Program tax credit under § 10–741(b) of the Tax – General Article: (1) the Level 1 opportunity zone enhancement is equal to 6% of the total amount of wages paid for each qualified position at an eligible project; and (2) the Level 2 opportunity zone enhancement is equal to 6.25% of the total amount of wages paid for each qualified position at an eligible project. (c) The enhanced tax credit percentages authorized under subsection (b) of this section are in substitution for and not in addition to the State employer withholding amount under § 10–741(b) of the Tax – General Article.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026