For the fiscal year 2025 IITC program, Commerce will begin accepting Form B QMTC applications on 8/20/2024 and Form A investor applications on 9/3/2024. Registration for the online investor queue will begin on 9/25/2024.
View Official FY2025 QueueIITC fosters the growth of Maryland's technology sectors by incentivizing investment in early-stage companies with the goal of increasing the number of companies developing innovative technologies in Maryland, increasing overall investments in current and emerging technology sectors, and increasing the number of individual investors actively investing in Maryland technology companies.
BENEFIT
IITC provides an income tax credit equal to 33% of an eligible investment in a Qualified Maryland Technology Company (QMTC) up to $250,000 in tax credits, or 50% of an eligible investment in a QMTC up to $500,000 in tax credits if the QMTC is located in Allegany, Dorchester, Garrett or Somerset County.
Enhanced tax credits are also available for Opportunity Zone fund investors who invest in QMTCs located in
Opportunity Zones. The Level 1 enhancement provides an income tax credit equal to 33% of an eligible investment in an eligible QMTC up to $300,000 in tax credits. The Level 2 enhancement provides an income tax credit equal to 50% of an eligible investment in a QMTC up to $500,000. Please review the
Opportunity Zone Enhancements website for more information.
Enhanced tax credits are also available for investors who invest in certain QMTCs located in RISE Zones. The QMTC’s technology must have been developed at a qualified institution within that RISE Zone and the QMTC has been in active business no longer than 7 years. The RISE Zone enhancement provides an income tax credit equal to 50% of an eligible investment in an eligible QMTC up to $500,000 in tax credits. Please review the RISE Zone program website for more information.
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 if the investor has no Maryland income tax liability.
Please continue to check this page for the most recent information regarding the availability of tax credits.
ELIGIBILITY
A qualified investor is an individual or entity that invests at least $25,000 in a Qualified Maryland Technology Company (QMTC) and is required to file an income tax return in any jurisdiction.
A QMTC must be engaged in an eligible technology sector and meet following minimum requirements as certified by the Department of Commerce (Commerce):
- Organized for profit, and engaged in the research, development, or commercialization of innovative and proprietary technology in an eligible technology sector;
- Has its headquarters and base of operations in Maryland;
- Owns or has properly licensed any proprietary technology;
- Has an aggregate capitalization of at least $100,000;
- Has fewer than 50 full-time employees;
- Has not participated in the Innovation Investment Incentive Tax Credit program for more than three prior fiscal years;
- Does not have its securities publicly traded securities on any exchange; and
- Is in good standing with the Maryland Department of Assessments and Taxation, is current on the payment of all tax obligations, and is not in default under any contract with the State of Maryland or any of its units or subdivisions.
The eligible technology sectors are advanced manufacturing, aerospace, agriculture, artificial intelligence, blue technology, cybersecurity, education, energy and sustainability, financial, life sciences, quantum, and sensor and robotics.
A company that has been certified as a qualified Maryland biotechnology company through the Biotechnology Investment Incentive Tax Credit Program is ineligible to qualify as a QMTC.
APPLY
All applications must be submitted with all attachments through Commerce's online system. Please read the instructions below before visiting the online portal.
- Beginning on August 20, 2024, Commerce will begin accepting the Form B QMTC application through the online system. The Form B QMTC application must be completed and submitted before Commerce will accept investor applications.
- Beginning on September 3, 2024, Commerce will begin accepting the Form A investor applications through the online system. Investor applications must be submitted no later than September 24, 2024 at 11:59 p.m. in order to be eligible for the Online Electronic Queue Investor Registration on September 25, 2024. Investor applications submitted after September 24 at 11:59 p.m. will be issued a username and reference number after September 25, 2024.
- Investors must separately register and apply through the online system. Investors may not apply through the registration of the technology/company.
- Investors will receive a five-letter username and six-digit reference number in an email confirming timely submission of the investor application. The username and reference number are required for the second step of the investor application process, which is to determine order in the first come, first serve allocation of funds using the Online Electronic Queue Investor Registration system.
- Beginning on September 25, 2024 at 9:00 a.m. EST, Commerce will open the Online Electronic Queue Investor Registration, which will require investors to use the username and reference number received during the first part of the investor application process.
- Submission order under the Online Electronic Queue Investor Registration will determine the first come, first serve allocation of funds. No other application may be filed for the purposes of determining submission order.
- Investors must have Javascript and Adobe Flash plugins to view the official clock and Recaptcha verification.
- Multiple submissions by an applicant using the same username and reference number will be considered filed at the date and time of the LAST submission. This rule is to ensure that the application procedure is as fair and equitable as possible. Applications are reviewed and approved based on the order received.
- An eligible investor has 30 days from the date when Commerce issues the initial tax credit certificate to make the investment in a QMTC or prospective QMTC. Within 10 days of making the investment, the eligible investor shall provide written notice with the required supporting proof of investment documentation to Commerce. If the qualified investor fails to provide notice of investment to Commerce within 40 days after the issuance of the initial tax credit certificate, Commerce shall rescind the initial tax credit certificate. Commerce will issue a final tax credit based on the actual investment, not to exceed the approved amount certificate.
- Any decision made by Commerce during the application process is considered final.
- To qualify for the credit, the applications must be submitted through Commerce's online system. Paper forms are for informational use only.
Commerce will review the Form A investor applications based on the submission order determined by the Online Electronic Queue Investor Registration. If the Form A investor application is approved, Commerce will issue an “Initial Certificate of Approval” to authorize the investment by the qualified investor in the technology company. The qualified investor must provide proof of investment to Commerce, and if the investment is approved, Commerce will issue a “Final Certificate of Approval” awarding the tax credit to the qualified investor.
Investor Application Forms:
(For informational purposes only)
Individual Investors: Download
Form A1Corporate Investors: Download
Form A2Pass-Through Entities: Download
Form A3
QMTC Application Form:
(For Informational purposes only)
Form B
RESOURCES
CONTACT
For more information about IITC contact:
Jason Sobel,
Tax Specialist
Office of Finance Programs
jason.sobel1@maryland.gov
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