Zones help to revitalize communities, attract businesses and create jobs
BALTIMORE, MD (June 28, 2017) – The Maryland Department of Commerce has approved the designation, redesignation, and expansion of five enterprise zones in the state. Talbot County and the Town of Easton, Anne Arundel County, and Montgomery County’s Burtonsville and Briggs Chaney areas have been designated as new enterprise zones. Additionally, Southern Garrett County’s enterprise zone has been redesignated, and the Cecil County and Town of Perryville enterprise zone has been expanded. The enterprise zone program, established in 1982, provides real property and state income tax credits to businesses that create jobs and make capital investments.
“I am pleased to designate several new enterprise zones around the state and renew the state’s commitment to other zones,” said Maryland Commerce Secretary Mike Gill. “This program generates opportunities in every corner of Maryland by fostering a climate of business growth, job creation, and economic prosperity.”
Businesses located in the state’s 31 enterprise zones have received roughly $45 million in property tax credits in FY 2018 based on more than $3 billion in capital investments made in FY 2017. Over the past five years, businesses in Maryland’s enterprise zones have made a total of $13.5 billion in capital investments.
The new Talbot County enterprise zone covers 90 acres with several large vacant commercial building assets. This is the first enterprise zone designation for Talbot County since the program was implemented. The county hopes to increase their employment base, business retention and expansion, tax base, and stimulate the development and investment.
“We are delighted that the state, Talbot County, and the Town of Easton joined together to provide an economic development tool that is focused on Port Street redevelopment,” said Ted Bautz, chairman of Easton Economic Development Corporation. “The enterprise zone will be a key incentive for businesses to grow and attract jobs to a much needed part of town.”
The new Montgomery County enterprise zone encompasses 230 acres along Route 29 in the Burtonsville and Briggs Chaney areas. This zone includes the Burtonsville Crossing Shopping Center, the Burtonsville Town Square, and the Briggs Chaney Plaza. The county is optimistic that this designation will help revitalize the community’s commercial district and take advantage of existing and planned transportation networks. This designation also provides an opportunity to build and enhance the sense of community by creating gathering places and amenities for residents and visitors.
“This Enterprise Zone designation will provide us with valuable tools that can be used to stimulate the revitalization of the Burtonsville/Briggs Chaney area,” said Montgomery County Executive Isiah Leggett. “Our goal is to use the enterprise zone tax incentives to attract capital investment in commercial, retail and transportation-oriented redevelopment activities, business expansion and job creation.”
The new Anne Arundel County enterprise zone designation covers 1,600 acres in the Brooklyn Park area. This is the county’s first application for designation since the inception of the program. Their goal is to incentivize commercial redevelopment by leveraging public incentives to address vacant properties, as well as encourage business retention, expansion, and job creation.
“Along with our county community revitalization finance and tax credit programs, the enterprise zone tax credits give Brooklyn Park more tools to continue the momentum that started with last year’s implementation of the Greater Baybrook Vision and Action Plan,” said Julie Mussog, CEO of Anne Arundel Economic Development Corporation. “By accessing enterprise zone property and income tax credits, businesses will be more incentivized to participate in the revitalization of this community, strengthen local commerce and create jobs.”
Garrett County applied to redesignate their former enterprise zone which expired in December 2016. This renewed enterprise zone will include the same boundaries of approximately 240 acres within the Southern Garett Business and Technology Park as well as the Southern Garrett Industrial Park. The county’s goal is to provide an area where businesses can thrive with sufficient utilities and services.
“We are grateful to the Maryland Department of Commerce for redesignating the Southern Garrett Industrial Park as an enterprise zone,” said Paul Edwards, chairman of the Board of County Commissioners for Garrett County. “In this hyper competitive economic development climate, every advantage and program helps to attract and/or maintain businesses, as well as assist existing businesses to grow and expand. This is a huge benefit to our county.”
Cecil County applied to expand their current zone to include the former Perryville Outlets which closed in October 2016. This adds 41 acres to the current 5,968-acre zone. With the expansion, the county is planning to attract redevelopment projects, increase employment and tax base, and encourage expansion of existing businesses.
“The expansion of the Cecil County enterprise zone to include the former Perryville Outlet Center will provide new economic vitality for the Town of Perryville and Cecil County,” said Chris Moyer, Cecil County director of economic development. “With this new enterprise zone designation, and this location's proximity to I-95, we hope that investment and jobs will return to this part of the county."
Commerce approves the state’s enterprise zones, while local governments are responsible for their administration. Businesses operating within an enterprise zone may be eligible for a tax credit towards their state income tax filings based upon the number of new jobs created, and a tax credit on their local real property taxes based upon their overall capital investment into a property.
About Maryland Commerce
The Maryland Department of Commerce stimulates private investment and creates jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing financial assistance to Maryland companies. The Department promotes the State's many economic advantages and markets local products and services at home and abroad to spur economic development and international investment, trade and tourism. Because they are major economic generators, the Department also supports the Arts, film production, sports and other special events. For more information, visit commerce.maryland.gov