Biotechnology Investment Incentive Tax Credit (BIITC)

About this page. This page explains the Biotechnology Investment Incentive Tax Credit in plain language. The credit is authorized under Maryland Tax-General Article §10-725 - PDF, with program regulations - PDF - 1.11 MB. If anything on this page conflicts with the statute or regulations, the statute and regulations control.

FY 2027 application cycle — key dates

August 4, 2026 — Commerce began accepting Form B QMBC applications.

August 18, 2026 — Commerce began accepting Form A investor applications.

September 1, 2026 at 9:00 a.m. EST — Online Electronic Queue Investor Registration opened. Submission order in the queue determines the order in which Commerce allocates funding.

All required documentation must be included with the investor application. Placeholder documents will not be accepted, and incomplete applications will be rejected.

Program Status

The program is currently active. Commerce is accepting applications for the FY 2027 cycle.

BIITC operates on a fiscal-year cycle with specific submission windows and a first-come, first-served online queue that determines the order in which Commerce allocates funding. Total credits issued in a fiscal year cannot exceed the budget amount.

Important. BIITC has the most time-sensitive application of any Commerce tax credit. Investors must register in the Online Electronic Queue at a specific date and time. Submission order in that queue determines whether an investor receives a credit at all.

Opportunity Zone Enhancement — Ending After Tax Year 2026

Deadlines for the Opportunity Zone enhancement

BIITC Opportunity Zone enhancements apply to taxable years beginning after December 31, 2018 but before January 1, 2027, under House Bill 45.

November 3, 2026 — All investor applications seeking the Opportunity Zone enhancement must be submitted and registered in the online queue by this date.

December 31, 2026 — The investment must be made no later than this date to receive any Opportunity Zone enhancement.

Meeting the November 3 deadline does not guarantee that funding will be available or that Commerce will issue an initial tax credit certificate before December 31, 2026. If funding becomes available after that date, the Opportunity Zone enhancement is no longer available for the investment. Apply as early as possible once all documentation is ready.

To qualify for the credit, Commerce must issue the initial tax credit certificate to the investor. After issuance, the investor has 30 calendar days to make the investment, and must notify Commerce with supporting documentation within 10 calendar days of making it.

Opportunity Zone transition. While the state-level BIITC Opportunity Zone enhancements end after tax year 2026, the broader Opportunity Zone framework continues. Maryland's current Opportunity Zone designations expire December 31, 2026, and new designations take effect January 1, 2027.

What This Program Does

BIITC provides a refundable Maryland income tax credit to qualified investors who make eligible investments in Qualified Maryland Biotechnology Companies (QMBCs).

Because the credit is refundable, an investor with little or no Maryland income tax liability can still receive the full credit amount as a refund.

The program supports seed and early-stage investment in Maryland’s biotechnology industry.

Who This Is For

BIITC involves two parties who must both qualify and apply separately. The biotechnology company must apply before any investor in that company can apply.

Qualified investors

Individuals or entities that invest in a certified QMBC. To qualify:

Invest at least $25,000 in a single QMBC
Be required to file an income tax return in any non-tax-haven jurisdiction
If an entity (LLC, corporation, partnership, trust): be registered and in good standing to conduct business in Maryland, with a Certificate of Good Standing from SDAT no older than 30 days at the time of application
Not be a disqualified investor (see Definitions)

Companies that cannot register to conduct business in Maryland, or cannot show good standing, are not able to participate.

Qualified Maryland Biotechnology Companies (QMBCs)

To qualify, a QMBC must:

Have headquarters and base of operations in Maryland
Have fewer than 50 full-time employees
Have been in active business no longer than 12 years
Be certified by Commerce as a QMBC
Have at least one full-time non-executive employee engaged in qualified biotechnology research and development in Maryland
Have received no more than $7,000,000 in cumulative BIITC credits for all of its investors
Meet all other program requirements

Definitions

Biotechnology company. A for-profit company primarily engaged (or within 2 months of an investment will be primarily engaged) in the research, development, or commercialization of innovative and proprietary technology that comprises, interacts with, or analyzes biological material including biomolecules, cells, tissues, or organs. The company must own or exclusively license biotechnology-related intellectual property — a U.S. non-provisional patent filing, an issued or assigned U.S. patent, or a fully executed exclusive licensing agreement — and be actively pursuing patent prosecution in the U.S. for any non-issued patents.

Active business. The Department can reasonably determine and establish the nature of the company’s commercial biotechnology research, development, or production operations. Legal organization, appointing officers, initial capitalization, or having a business office is not enough on its own.

Eligible investment. Money (cash or cash equivalents in U.S. dollars) at risk of loss, contributed to a QMBC in exchange for stock, a partnership or membership interest, or other ownership interest. Also includes convertible debt created by the investor within one year before the application date, if converted to equity within 30 days after the initial certificate is issued.

Disqualified investor. Cannot be: a qualified pension plan, IRA, or similar retirement vehicle; a founder or current employee of the QMBC if the company has been in active business more than 5 years; spouses and minor children of such founders or employees; or an entity where 5% or more of ownership is attributable to disqualified individuals or entities. The investor cannot directly or indirectly own more than 25% of the biotechnology company receiving the investment.

Headquarters and base of operations. The Maryland facility or facilities where the QMBC’s financial, personnel, planning, management, administrative, biotechnology research, development, and production activities are primarily handled.

Program Duration and Limits

Annual program funding

The total amount of credits Commerce may issue in a fiscal year is set by the Maryland budget. Once exhausted, no additional credits are issued for that fiscal year. Credits are issued first-come, first-served using the Online Electronic Queue.

Per-QMBC limits

Per fiscal year: a single QMBC may not receive, for the benefit of its investors, more than 10% of the program’s fiscal year funding.
Cumulative: the total of BIITC credits issued to all investors in a single QMBC may not exceed $7,000,000.

Per-investor limits

Minimum investment: $25,000
Maximum credit: ranges from $250,000 to $750,000 depending on the QMBC’s location — see the table below

Refundability

The credit is refundable. If the investor has no Maryland income tax liability, or a liability smaller than the credit, the unused portion is refunded.

How the Program Works

Credit amounts

Where the QMBC is located	Credit rate	Max credit	Notes
Anywhere in Maryland (standard)	33%	$250,000	Default rate
Allegany, Dorchester, Garrett, or Somerset County	50%	$500,000	Distressed county rate
RISE Zone	50%	$500,000	QMBC tech developed at the qualified institution; QMBC active ≤7 years
Opportunity Zone — Level 1	65%	$575,000	Investor must be a Qualified Opportunity Fund. Ends after tax year 2026.
Opportunity Zone — Level 2	75%	$750,000	All Level 1 requirements and a community engagement and local government approval. Ends after tax year 2026.

Important. Enhanced credit amounts are in substitution of, not in addition to, the standard 33% credit. An investor qualifying for an enhancement claims the enhanced credit in place of the standard amount.

Opportunity Zone enhancement

The investor must be a Qualified Opportunity Fund, and the QMBC must be located in a Maryland Opportunity Zone. See the Opportunity Zone Enhancement Credits page for full requirements, and the deadlines above.

Level 1: 65% of the investment, up to $575,000 in credits
Level 2: 75% of the investment, up to $750,000 in credits

RISE Zone enhancement

Investors in certain QMBCs located in RISE Zones may receive a credit equal to 50% of the investment, up to $500,000. To qualify:

The QMBC’s technology must have been developed at a qualified institution within that RISE Zone
The QMBC must have been in active business no longer than 7 years

See the RISE Zone program page for details.

Montgomery County supplemental program

Investors making qualified investments in QMBCs located in Montgomery County may also receive a payment from the County’s Supplemental Program, subject to appropriation of funds. Contact the Montgomery County Department of Finance at 240-777-8860.

Key Eligibility Requirements

Qualified investor

Invests at least $25,000 in a single QMBC
Is required to file an income tax return in a non-tax-haven jurisdiction
If an entity: registered and in good standing with the Maryland State Department of Assessments & Taxation, with a Certificate of Good Standing no older than 30 days
Is not a disqualified investor
Meets all other program requirements

Qualified Maryland Biotechnology Company

Maryland headquarters and base of operations
Fewer than 50 full-time employees
In active business no longer than 12 years
Certified by Commerce as a QMBC
At least one full-time non-executive employee engaged in qualified biotechnology R&D in Maryland
Cumulative BIITC credits to all investors not exceeding $7,000,000
Owns or has immediately available and useable rights in biotechnology-related intellectual property, and is actively pursuing U.S. patent prosecution for any non-issued patents
Meets all other program requirements

Documents You Will Need to Apply

For the QMBC

Form B — QMBC Application (PDF) - PDF - 696.18 KB (informational copy)
Documentation of Maryland headquarters and base of operations, employee count, years in active business, and biotechnology intellectual property

For investors

Use the form that matches your investor type (informational copies):

Additional documentation:

For entity investors: Maryland Certificate of Good Standing, no older than 30 days at the time of application
Documentation that the investor files an income tax return in a non-tax-haven jurisdiction
Investment terms — amount and type of ownership interest

Additional documents for the Opportunity Zone enhancement

A complete copy of Addendum A, filled out by the biotech company receiving the investment, including the qualitative impact summary
IRS Form 8996
A statement from an independent CPA or attorney on whether the investing entity meets the definition of a Qualified Opportunity Fund under the Internal Revenue Code

For Level 2, also provide:

Approval of the enhancement from Baltimore City or the county where the biotech company is located
A fully executed community benefits agreement negotiated by the Qualified Opportunity Fund and community groups or strategic industry partnerships in the Opportunity Zone, OR the names and addresses of Opportunity Zone community residents serving on the Governing Board or Advisory Board of the Qualified Opportunity Zone Business

No placeholders. All required documentation must be submitted with the application. Placeholder documents will not be accepted, and incomplete applications will be rejected and the queue position is lost.. A rejected applicant may apply and register for the queue again.

How to Apply

All applications must be submitted with attachments through Commerce’s online system. Paper forms are for informational use only and do not qualify an applicant for the credit. Online applications are not available at this time. Please reach out directly to the contact listed below.

Step-by-step

QMBC applies first. The QMBC completes and submits Form B online. The Form B must be submitted before Commerce will accept investor applications for that company.
Investor submits Form A. Investors register and apply separately — they may not apply through the biotechnology company’s registration. Use the form matching the investor type (A1, A2, or A3).
Investor receives queue credentials. Commerce emails a five-letter username and six-digit reference number confirming submission. Both are required for the queue. These credentials are also on the application submission confirmation page and are accessible at any time by logging into the investor’s account on the portal.
Investor registers in the Online Electronic Queue. At the announced opening time, log in to the Online Electronic Queue using the username and reference number. Submission order determines the first-come, first-served allocation of funds. No other filing determines submission order.
Commerce reviews and issues an Initial Certificate of Approval. Applications are reviewed in queue order. The initial certificate authorizes the investment.
Investor makes the investment within 30 days. The investor has 30 days from the date the initial certificate is issued to make the investment in the QMBC or prospective QMBC.
Investor submits proof of investment. Within 10 days of making the investment — and no later than 40 days after the initial certificate is issued — provide written notice with supporting proof to Commerce. Missing this deadline causes Commerce to rescind the initial certificate.
Commerce issues the Final Certificate of Approval. Based on the actual investment, not exceeding the approved amount.

Do not resubmit in the queue. Multiple submissions by the same applicant using the same username and reference number are counted at the date and time of the LAST submission. This rule keeps the application procedure fair and equitable. Any decision made by Commerce during the application process is final.

Application Review Timeline

Review timing depends on the completeness of the application and the investor’s position in the Online Electronic Queue. Monitor email during the review window for requests for additional information.

All required documentation must be provided at the time the application is submitted, or the application is rejected and the queue position lost
Investment must be made within 30 days of the initial certificate
Proof of investment must be submitted within 10 days of investing, and no later than 40 days after the initial certificate

View the Official FY2026 Queue for reference on how allocation played out in the prior cycle.

How You Claim the Credit

After Commerce issues a Final Certificate of Approval:

Claim the credit on a Maryland tax return.
Attach a copy of the Final Certificate of Approval to the return, along with any required forms.

If the credit exceeds the investor’s Maryland income tax liability, the excess is refundable.

For questions about claiming the credit, contact the Comptroller of Maryland at 1-800-MD TAXES or [email protected].

Credit Recapture

The credit is subject to recapture if, within 2 years from the close of the taxable year for which the credit was claimed, either:

the investor sells, transfers, or otherwise disposes of the ownership interest in the QMBC that gave rise to the credit, or
the QMBC ceases operating as an active business with its headquarters and base of operations in Maryland

A purchase of all of the QMBC’s shares during the 2-year recapture period counts as a disposition.

The recapture amount is a percentage of the credit claimed, based on when the event occurs:

100% if during the tax year for which the credit was claimed
67% if during the first year after that tax year
33% if more than 1 year but not more than 2 years after that tax year

Important. The investor must notify both Commerce and the Comptroller of Maryland in the event of a recapture.

Frequently Asked Questions

Legal Notices and Required Language

This credit is authorized under Maryland Tax-General Article §10-725 - PDF.

Program resources:

Related programs:

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]