One Maryland Tax Credit (OMTC)

About this page.  This page explains the One Maryland Tax Credit in plain language. The credit is authorized under Maryland Tax-General Article §10-714 and Economic Development Article §§6-401 through 6-405, with program regulations - PDF - 201.52 KB. If anything on this page conflicts with the statute or regulations, the statute and regulations control.

Program Status

The program is currently active.

Notices of Intent and applications are accepted on a rolling basis through Commerce’s online portal. There is no application fee.

Important.  Significant changes took effect July 1, 2018. Businesses that received a Final Certificate of Eligibility before that date follow the prior statute. Businesses applying for Final Certification on or after July 1, 2018 follow the rules described on this page. Businesses that submitted an intent letter before July 1, 2018 are NOT grandfathered.

What This Program Does

The One Maryland Tax Credit (OMTC) provides a Maryland state income tax credit for businesses that:

• invest at least $500,000 in eligible project costs in a Priority Funding Area within a Tier 1 County, and
• create at least 10 net new full-time qualified positions in Maryland.

The credit ranges from $1 million to $5 million per project depending on the number of new positions created.

The credit can be used against state income tax (or insurance premiums tax for insurance companies). It is carried forward for up to 10 years after the credit year, and becomes partially refundable starting in the fourth year following the credit year.

Who This Is For

This credit is for businesses that:

• are locating or expanding in a Priority Funding Area (PFA) within a Tier 1 County
• are engaged in an eligible business activity (see “Eligible Business Activities”)
• can make a capital investment of at least $500,000 in eligible project costs (or $5 million to qualify for the maximum credit)
• will create at least 10 new full-time qualified positions in Maryland

Nonprofit corporations may also benefit by claiming the credit against state income tax liability or, beginning in year 4, claiming a refund based on the state income tax withholding of qualified employees.

Definitions

Tier 1 County.  A Maryland county designated as economically distressed under the OMTC program. The list is reviewed monthly by Commerce. See “One Maryland Tier 1 Counties” below.

Priority Funding Area (PFA).  A designated growth area within a Tier 1 County. PFAs include state enterprise zones, federal empowerment zones, DHCD sustainable communities, incorporated municipalities, the areas between the I-495 beltway and Washington D.C. and the I-695 beltway and Baltimore City, and growth areas designated by each county.

Qualified position.  A full-time position of indefinite duration, newly created, that is filled for at least 12 months and pays at least 120% of the Maryland state minimum wage in effect for that tax year. Positions created through a change in ownership, consolidation, merger, restructuring, or contractual shift from an existing Maryland business do not qualify.

Full-time position.  At least 840 hours of work during at least 24 weeks in a six-month period (an average of about 35 hours per week).

24-month look-back provision.  A jurisdiction that stops meeting the Tier 1 criteria may remain eligible for an additional 24 months from the date it last qualified. This protects projects already in progress from sudden changes in jurisdiction status.

One Maryland Tier 1 Counties

As of December 2025, the following jurisdictions are designated Tier 1 for the One Maryland Tax Credit:

Commerce reviews this list monthly as new data becomes available. Counties receive notice when they enter a grace period or when full eligibility is restored. Verify with Commerce that the project location is in a PFA within a Tier 1 County before incurring eligible costs or hiring qualified positions.

Time-sensitive — Worcester County

Worcester County does not currently meet the Tier 1 criteria. It last qualified in September 2024 and remains eligible only through September 2026 under the 24-month look-back provision.

Businesses planning a Worcester County project should confirm current eligibility with Commerce before submitting a Notice of Intent or incurring eligible costs.

Program Duration and Limits

Credit amounts by job count

To qualify for the maximum $5 million credit, a business must create at least 50 qualified positions AND incur at least $5 million in eligible project costs.

Carryforward and refundability

• Carryforward: up to 10 taxable years following the credit year
• Partial refundability beginning year 4: the credit may be claimed as a refund up to the annual payroll withholding amount of the qualified positions

Cannot combine with Job Creation Tax Credit

For any tax year in which the business claims the One Maryland Tax Credit, the business may not also claim the Job Creation Tax Credit.

How the Program Works

The credit is based on eligible project costs and qualified positions created. The maximum credit is capped by both the job count tier and the eligible costs incurred.

Eligible project costs

Eligible costs are those related to acquiring, constructing, rehabilitating, installing, and equipping an economic development project. They also include costs of moving a business from outside Maryland and furnishing and equipping the new location.

Eligible project costs include:

• Land acquisition
• Performance and contract bonds and insurance
• Architectural and engineering services
• Environmental mitigation
• Utility installation
• Interest costs prior to and during acquisition and construction, and for two years after project completion
• Legal and accounting fees
• Fixed telecommunications equipment
• Office furniture and equipment

Total eligible costs must be at least $500,000 (or $5 million to qualify for the maximum $5 million credit).

Lease costs may qualify in some cases. The lease must be reviewed and approved by Commerce. Purchase of an existing building may qualify if the Secretary determines the acquisition is being made in connection with a project to reuse a vacant or underused facility. Notify Commerce before committing to such a project.

Project timeline

The OMTC project lifecycle spans roughly 10–15 years from Notice of Intent through the end of the carryforward period.

Wage requirement

Each qualified position must pay at least 120% of the Maryland state minimum wage in effect for that tax year. As of January 1, 2024, the Maryland state minimum wage is $15.00/hour, so 120% = $18.00/hour. The Fair Wage Act of 2023 froze the rate at $15.00/hour through at least 2026.

If the state minimum wage increases, the wage required for a position to remain qualified increases correspondingly. This applies during the entire 10-year carryforward period — the business may only count positions that continue to meet the wage requirement.

Confirm the current minimum wage at Maryland Department of Labor. Some counties (Montgomery, Howard, and Prince George’s) have higher local minimum wages that may apply.

Eligible Business Activities

The facility must be primarily engaged in one of these activities:

• Manufacturing or mining
• Transportation or communications
• Agriculture, forestry, or fishing
• Public utility
• Research, development, or testing
• Biotechnology
• Business services
• Warehousing
• Filmmaking, resort and recreation
• Computer programming, data processing, or other computer-related services
• Central financial, real estate, or insurance services
• Operation of central administrative offices or a company headquarters
• Growth, processing, or dispensing of cannabis (as of July 1, 2023)

Key Eligibility Requirements

To qualify for the credit, a business must meet all of these requirements:

• Declaration of Intent: submit a written Notice of Intent to Commerce before incurring any eligible costs or creating any qualified positions. Costs and jobs created before the intent date do not count.
• Certification: be certified by Commerce as a qualified business entity eligible for OMTC.
• Location: locate or expand at a project within a Priority Funding Area in a Tier 1 County. Confirm with Commerce that the project location qualifies before incurring costs or hiring.
• Eligible activity: the facility must be primarily engaged in an eligible business activity (see list above).
• Eligible costs: incur at least $500,000 in eligible project costs (or $5 million for the maximum credit).
• Job creation: create at least 10 new full-time qualified positions within a 24-month period.
• 12-month fill: each qualified position must be filled for 12 months before the Final Application is submitted.
• Wage: each qualified position must pay at least 120% of the Maryland state minimum wage.

Documents You Will Need to Apply

With the Notice of Intent

• Notice of Intent form (PDF) - PDF - 222.07 KB

With the Preliminary Application

• Projected job and wage data
• Employment Affidavit establishing the number of jobs at the facility before creating new jobs
• Project description and timeline
• Projected eligible project costs

With the Final Application

• List of qualified positions and the employees in those positions
• List of eligible project costs incurred
• Supporting documentation (invoices, receipts, contracts) for a sample of costs as requested by Commerce
• Payroll records demonstrating the 12-month fill of each qualified position
• Documentation that each qualified position meets the 120% state minimum wage requirement

Annual reporting (during carryforward)

• Annual report to Commerce describing how much project tax credit the business claimed on its tax return that year

Important.  Failure to submit the required annual report to Commerce will DISQUALIFY the business from claiming the One Maryland Tax Credit in future years. This is a year-by-year compliance requirement during the entire 10-year carryforward period.

Commerce may request additional documentation to verify eligibility at any stage.

How to Apply

1. Submit a Notice of Intent. File the Notice of Intent form - PDF - 222.07 KB with Commerce before incurring any eligible costs or hiring any qualified employees. If a business submits a Preliminary Application without first submitting an intent letter, the date the Preliminary Application is received becomes the intent date.
2. Submit a Preliminary Application and Employment Affidavit. Submit through Commerce’s online system. Upon acceptance, Commerce will issue a Preliminary Certificate of Eligibility if the business is projected to qualify.
3. Start the project. Begin the project within 12 months of the intent date. Complete the project within 3 years of starting.
4. Create qualified positions. Create at least 10 qualified positions within 24 months. Each must be filled for 12 months before applying for Final Certification.
5. Submit the Final Application. Include the list of qualified positions, list of eligible costs, and supporting documentation. Commerce issues a Final Certificate of Eligibility with the credit amount.

Apply through Commerce’s online system:

• Register for an account
• Log in to the application portal

Application fee: None.

Application Review Timeline

• Preliminary Certificate of Eligibility: 30–60 days
• Final Certificate of Eligibility: 120 days

Processing times are estimates and depend on a complete application with all required documents and required compliance.

How You Claim the Credit

After Commerce issues a Final Certificate of Eligibility:

1. Attach the Final Certificate to the Maryland state income tax return (or insurance premiums tax return).
2. Apply the credit against state income tax liability. The credit reduces only state income tax, not the county income tax add-on.
3. Carry forward any unused portion of the credit for up to 10 years following the credit year.
4. Beginning year 4: apply the credit against state income tax liability and claim a refund. The refund is limited annually to the payroll withholding of the qualified positions.
5. Each year of the carryforward period: submit an annual report to Commerce describing how much credit was claimed that year. Failure to submit this report disqualifies the business from claiming the credit in future years.

Job Maintenance and Workforce Reductions

A reduction in workforce does not automatically forfeit the credit, but it does affect the business’s ability to use it.

If qualified positions remain at the required threshold

The business may continue claiming the credit during the 10-year carryforward period as planned.

If qualified positions fall below the required threshold

A prorated credit may still be claimed if:

• The number of qualified positions does not fall below 10, and
• The business maintained the required number of positions for the credit tier (25 for the $2.5M credit, 50 for the $5M credit) for at least five years.

If qualified positions fall below 10, the business may no longer claim the credit.

During the carryforward period, the business may only count positions that continue to meet the wage and other qualified-position requirements. If the state minimum wage rises and a position’s pay does not, that position stops counting.

Frequently Asked Questions

Legal Notices and Required Language

This credit is authorized under:

• Maryland Tax-General Article §10-714
• Economic Development Article §§6-401 through 6-405

Program resources:

• Statute (current) - PDF - 169.77 KB
• Program Regulations - PDF - 201.52 KB
• House Bill 1295 (2018 changes) - PDF - 239.14 KB
• One Maryland Fact Sheet — July 1, 2018 Changes - PDF - 405.69 KB
• Notice of Intent form - PDF - 222.07 KB

For businesses certified before July 1, 2018:

• Statute prior to July 1, 2018 - PDF - 169.77 KB

Applicants should consult the statute and applicable regulations for the complete legal requirements governing this tax credit.

Contact

Jason Sobel
Tax Specialist
Maryland Department of Commerce
Office of Finance Programs
Email: [email protected]