Sign In

More Jobs for Marylanders Incentive Program for Manufacturers

​​​One of Governor Hogan's top legislative priorities of 2017, More Jobs for Marylanders, promotes the growth of manufacturing in Maryland by providing tax incentives for manufacturing job creation, encourages manufacturers to invest in new equipment through accelerated and bonus depreciation, and funds job training and apprenticeship programs to help strengthen Maryland's workforce.

More Jobs for Marylanders Tax Credits

Tax credits are available to new and existing manufactures that locate or expand in Maryland and create new manufacturing jobs.

BENEFITS

New and Existing manufacturers located in a Tier 1 or Tier 2 County may qualify for the following credits, available for a 10-year benefit period.

  • TIER 1 NEW BUSINESS: (a) a refundable credit against the State's income; (b) a credit against the State's portion of the property tax; (c) a refund of sales and use tax; and (d) a waiver of fees charged by SDAT.
  • TIER 1 EXISTING BUSINESS: A refundable credit against the State's income tax. 
  • TIER 2 EXISTING BUSINESS:  A refundable credit against the State's income tax.

*Tier 1 Counties include Baltimore City, Allegany, Baltimore, Caroline, Dorchester, Garret, Kent, Prince George's, Somerset, Washington, Wicomico and Worcester Counties. Tier 2 Counties include all other Maryland Counties.


ELIGIBILITY

To qualify a business must:

  • Be a manufacturer primarily engaged in activities that according to the North American Industrial Classification System, would be included in Sector 31, 32, or 33, except for Refiners.
  • Offer ongoing job training or a postsecondary education program (e.g. tuition reimbursement).
  • Provide Notice of Intent to enroll in the program:
    • New manufacturers provide Notice of Intent to Commerce before establishing a facility in Maryland.  
    • Existing manufacturers provide Notice of Intent to Commerce before creating new jobs. 
  • New or existing manufacturers in Tier 1 counties must create at least 5 new qualified jobs. (A qualified job is a job that is full-time, pays at least 120% of State minimum wage and is filled for 12 months.)
  • Existing manufacturers in Tier 2 counties must create at least 10 new qualified jobs.
  • The business must begin hiring within 12 months of its Notice of Intent to Commerce.  Once it begins hiring, it must add 5 new qualified positions (Tier 1 Counties) or 10 new qualified positions (Tier 2 Counties) within 12 months after the date of its first new hire.
  • Existing manufacturers that move from their facility one Maryland County into another after June 1, 2017 will not be eligible to participate.
  • Be certified by Commerce as a qualified business entity.

Businesses can enroll their project in the program and be certified as a Qualified Business Entity until June 1, 2020.  Businesses who have been certified to receive benefits under the program will receive for the full ten year duration, subject to appropriation.  

If during the 10-year benefit period, the number of new qualified positions falls below the number the business received credit for in the first benefit year, the project will removed from the program and all benefits will be terminated.


APPLY 

  • A new manufacturer must provide notice before establishing its facility in Maryland and an existing manufacturer must provide notice before it begins creating new jobs.
  • Upon receipt of the Notice of Intent, Commerce will provide the business with an application to enroll its project in the More Jobs for Marylanders Incentive Program.
  • Businesses that meet the requirements to enroll their project in the program will be certified by Commerce as a Qualified Business Entity eligible for the applicable incentives available under the program.
  • Businesses should apply on July 1 for an Initial Income Tax Credit Certificate for those jobs that will qualify for credits during the fiscal year.

Application Materials 


RESOURCES


Additional Benefits Available to Manufacturers

Accelerated and bonus depreciation encourages additional investment in new equipment.

  • Recouples Maryland to Federal Internal Revenue Code Section 179 and 168(k).
  • Frees up capital more rapidly, for application into facility upgrades, hiring and other growth-related initiatives.
  • Most effective with small manufacturers that need capital to reinvest in their businesses.

  • For tax years beginning after December 31, 2018, under IRC Section 179 manufacturers can expense capital expenditures up to $510,000/year, with the expensing option phased out after $2,030,000 for 2019. 
  • Bonus depreciation under IRC Section 168(k) is independent from IRC Section 179.  Bonus depreciation allows a business to deduct as a depreciation expense, 30% of the adjusted basis of certain qualified property in the year that the property is placed in service after December 31, 2018. 


Partnership for Workforce Quality, Apprenticeship Tax Credits and other funding for workforce development strengthens Maryland's workforce 


  • $1 million for Partnership for Workforce Quality (PWQ), providing matching grants to manufacturers that provide incumbent worker training programs. 

  • $1 million for Workforce Development Scholarships to eligible students enrolled in job training programs at community colleges. 

  • Apprenticeship Tax Credit of $1,000 income tax credit, per apprentice, for manufacturers that employ eligible apprentices. 
  • Additional measures to encourage high schools to provide increased vocational training programs.


CONTACT

For more information, please contact:
 
Mark A. Vulcan, Program Manager, Tax Incentives
Maryland Department of Commerce, Office of Finance Programs
401 E. Pratt St, 15th floor
Baltimore, MD 21202​
410-767-6438

Stacy Kubofcik, Tax Incentive Specialist, Tax Incentives
Maryland Department of Commerce, Office of Finance Programs
401 E. Pratt St, 15th floor
Baltimore, MD 21202
410-767-4980
 
 

FREQUENTLY ASKED QUESTIONS

  • What is the More Jobs for Marylanders Program?
    • The More Jobs for Marylanders Incentive Program provides several incentives to encourage the growth of Maryland manufactures. Incentives include tax credits to promote manufacturing job creation, accelerated and bonus depreciation to encourage manufacturers to invest in new equipment, and funding for job training and apprenticeship programs to help strengthen Maryland's workforce.

  • What are the More Jobs for Marylanders Tax Credits?
    • The More Jobs for Marylanders (MJM) Tax Credits are one part of the larger More Jobs for Marylanders Incentive Program. The program incentivizes new manufacturers to locate in Maryland and existing manufacturers to expand their workforce. Eligible new and existing manufacturers in "Tier 1" or "Tier 2" counties in Maryland must be enrolled in the Program before June 1, 2020, create the minimum required jobs, offer ongoing job training and meet other program requirements to qualify.

  • What benefits are available to businesses that qualify for the MJM Tax Credit program?
      • A new manufacturer locating in a Tier 1 county is eligible for the following benefits: (a) a refundable credit against the State's income tax; (b) a 100% credit against the State's portion of the real property tax; (c) a refund of sales and use tax; and (d) a waiver of fees charged by SDAT.
      • An existing manufacturer expanding in a Tier 1 or Tier 2 county is eligible for the credit against the State's income tax.
      • Credits are available for a 10-year benefit period.

  • Who qualifies for the tax credits?
    • Manufacturers primarily engaged in activities under the North American Industrial Classification System (NAICS) that are included in sectors 31, 32, and 33 (except refiners), that create new jobs,  offer ongoing job training and meet other program requirements. New manufacturers that establish a facility in a Tier 1 County may qualify; existing manufacturers that expand in a Tier 1 or Tier 2 county may qualify.

  • What are Tier 1 and Tier 2 counties?
    • Tier 1 counties currently include Baltimore City, Allegany, Baltimore, Dorchester, Prince George's, Somerset, Washington and Worcester Counties.  

      Tier 2 counties include all other counties in Maryland: Anne Arundel, Calvert, Caroline, Carroll, Cecil, Charles, Frederick, Garrett, Harford, Howard, Kent, Montgomery, Queen Anne's, St. Mary's, Talbot, and Wicomico.

  • How does a manufacturer qualify for the tax credits?
      • Be a manufacturer primarily engaged in NAICS sectors 31, 32 or 33 and offer ongoing job training.
      • Provide Notice of Intent to enroll in the program:
        • New manufacturers provide Notice of Intent to Commerce before establishing a facility in Maryland. 
        • Existing manufacturers provide Notice of Intent to Commerce before creating new jobs. 
      • Enroll the project in the MJM Tax Credit Program and become a Qualified Business Entity. Commerce may not certify any businesses as Qualified Business Entities on or after June 1, 2020.
      • Create the minimum number of required qualified positions. The positions must be filled for 12 months before the benefit period begins.

  • What is a qualified position?
    • A qualified position is a position that pays at least 120% of the State minimum wage, is full-time, is newly created, was not moved or transferred from another facility in the State and is filled for at least 12 months.

  • What are the job minimums required to qualify?
      • Manufacturers in Tier 1 counties must create at least 5 qualified positions.
      • Manufacturers in Tier 2 counties must create at least 10 qualified positions.

  • When can I begin hiring?
      • The business must submit a Notice of Intent before it begins hiring.
      • The business must begin hiring within 12 months of the date of its Notice of Intent to Commerce.  
      • Once it begins hiring, it must add 5 new qualified positions (Tier 1 Counties) or 10 new qualified positions (Tier 2 Counties) within 12 months after the date of its first new hire.

  • What is the definition of a "new" business?
    • A new business is a business entity that is not located in the State at the time of its submission of its Notice of Intent to enroll in the Program.

  • How does my business apply to the tax credit program?
      • A new manufacturer must provide notice before establishing its facility in Maryland and an existing manufacturer must provide notice before it begins creating new jobs.
      • Upon receipt of the Notice of Intent, Commerce will provide the business with an application to enroll its project in the Program.
      • Businesses that meet the requirements to enroll their project in the program will be certified by Commerce as a Qualified Business Entity eligible for the applicable incentives available under the program. Commerce will not certify any businesses as qualified business entities beginning June 1, 2020.
      • Businesses should apply on July 1 for an Initial Income Tax Credit Certificate for those jobs that will qualify for credits during the fiscal year. The amount of initial tax credits is capped for all businesses in a fiscal year. The credits are issued on a first come, first served basis.  
      • When the jobs have been filled for 12 months, the business should apply for Final Certification for the income tax credit.
      • New manufacturers will apply separately for the Sale and Use tax refund and waiver of SDAT fees.


  • When will I qualify?
    • The 10-year benefit period begins when the business has created at least 5 (Tier 1) or 10 (Tier 2) qualified positions and those positions have been filled for 12 months.

  • Can I apply if I am a new manufacturer that locates in a Tier 2 County?
    • ​New manufacturers that locate in Tier 2 Counties do not qualify for the MJM tax credits. However, once a new manufacturer establishes itself in the Tier 2 County and hires one new position, it may apply to Commerce as an existing Maryland manufacturer and may qualify for the income tax credit.

  • Can I apply if I have moved my manufacturing facility from one county in Maryland to another?
    • NO, a business that moves its manufacturing facility from one county in Maryland to another after June 1, 2017, does not qualify for the program.

  • If I have multiple projects, can I apply for each project?
    • ​Yes, a business can apply for multiple projects. Each project must qualify on its own. The business must submit a separate Notice of Intent and Enrollment Application for each project.

  • How do I determine the amount of the income tax credit?
    • ​For each qualified position, the income tax credit is equal to 5.75% multiplied by the total wages paid for the qualified position.

  • What happens if I have to reduce my workforce during the benefit period?
    • ​If a business's number of qualified positions at the project decreases to a number less than the number established in the first benefit year, the project will be removed from the program and the business will receive no further credits. As long as the number of qualified positions remains above the number established in the first benefit year, the number of qualified positions may fluctuate, but the income tax credit will fluctuate accordingly.

  • How do I qualify for the Sales and Use Tax Refund?
    • ​The Sales and Use tax refund is an incentive available to New Manufacturers that establish a facility in a Tier 1 County. Sales and use taxes related to the project are eligible for the Sales and Use tax refund. A qualified business entity may apply for a sales and use tax refund for the amount of sales and use tax paid in the preceding calendar year beginning January 1, 2019 for the sale of personal property or services purchased for use at the project. Commerce may not issue sales and use tax refunds in total of more than $1 million in a fiscal year. The business may apply each year during its 10-year benefit period.

  • How do I qualify for the State real property tax credit?
    • ​The State real property tax credit is imposed on real property owned by a new manufacturer that locates in a Tier 1 County. The new manufacturer must enroll its project in the MJM Tax Credit Program and be certified by Commerce as a qualified business entity to qualify for the benefit of 100% credit against the State real property tax. New manufacturers that lease a facility in a Tier 1 county will not qualify for the State real property tax credit.

  • Are there other incentives available to manufacturers?
    • Yes, in addition to the tax credits, the More Jobs for Marylanders Incentive program includes these additional benefits to manufacturers:

      • For tax years beginning after 12/31/2018, under IRC Section 179 manufacturers can expense capital expenditures up to $510,000/year, with the expensing option phased out after $2,030,000 for 2019.
      • Bonus depreciation under IRC Section 168(k) is independent from IRC Section 179. Bonus depreciation allows a business to deduct as a depreciation expense, 30% of the adjusted basis of certain qualified property in the year that the property is placed in service after December 31, 2018. 
      • Funding for training and workforce development scholarships.  
      • $1,000 income tax credit, per apprentice, for manufacturers that employ eligible apprentices.