CIITC provides a refundable income tax credit to Qualified Investors who invest in Qualified Maryland Cybersecurity Companies (QMCCs). The purpose of this program is to attract investment in Maryland cybersecurity companies in order to help them grow, create jobs, and retain intellectual property in Maryland.
Note: This tax credit closed on April 5, 2019 and is no longer accepting applications for FY 2019. Please check back in May 2019 to learn the pre-qualification date for FY 2020.
Qualified Investors receive a credit equal to 33% of an eligible investment in a QMCC. There is a limit of $250,000 for the tax credit for a Qualified Investor in a fiscal year. A QMCC may not receive total credits exceeding 15% of the total program appropriation for each fiscal year. Total credits issued during the fiscal year cannot exceed the budget amount and are, therefore, issued on a first come basis. The credit is refundable to the extent that the amount of the credit exceeds the Qualified Investor's Maryland income tax liability.
For Qualified Investors who invest in a QMCC located in Allegany, Dorchester, Garrett or Somerset Counties, the amount of the credit is 50% of the investment in the QMCC, not to exceed $500,000.
A qualified investor is an individual or entity that invests at least $25,000 in a QMCC and is required to file an income tax return in any jurisdiction.
A QMCC is a company that meets the following requirements and has been certified by the Department of Commerce (Commerce):
- Is a going concern, organized for profit, and engaged primarily in the development of innovative and proprietary cybersecurity technology;
- Has its headquarters and base of operations in Maryland;
- Has an aggregate capitalization of at least $100,000;
- Has fewer than 50 employees;
- Has not participated in the CIITC for more than 2 years;
- Has no publicly traded securities on any exchange; and
- Is in good standing with the Department of Assessments and Taxation and is current on the payment of all tax obligations and not in default under any contract with the State of Maryland or any of its units or subdivisions.
Note: Cybersecurity technology means products or goods intended to detect or prevent activity intended to result in unauthorized access to, exfiltration of, manipulation of, or impairment to the integrity, confidentiality, or availability of an information system or information stored on or transiting an information system.
Check back in May 2019 to learn the pre-qualification date for FY 2020 and more details about applying for the tax credit.
For more information about CIITC contact:
Abigail McKnight, Tax Specialist
Maryland Department of Commerce, Office of Finance Programs
Kenneth McCreedy, Senior Director
Maryland Department of Commerce, Division of Cyber and Aerospace
FREQUENTLY ASKED QUESTIONS