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More Jobs for Marylanders Incentive Program

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.  In 2019, the tax credit program was expanded to non-manufacturers that locate or expand in Opportunity Zones.

More Jobs for Marylanders Tax Credits

Tax credits are available to new and existing manufacturers that locate or expand in Maryland and create new manufacturing jobs and to non-manufacturers that locate or expand in Maryland Opportunity Zones.

BENEFITS

The benefits are available for a 10 year period. 

  • TIER 1 NEW MANUFACTURING BUSINESS: (a) a refundable credit against the State’s income tax of 5.75% of wages for each qualified positon; (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 OR TIER 2 EXISTING MANUFACTURING BUSINESS: A refundable credit against the State’s income tax of 5.75% of wages for each qualified positon.
  • OPPORTUNITY ZONE NEW NON-MANUFACTURING BUSINESS: (a) a refundable credit against the State’s income tax of 5.75% of wages for each qualified positon; (b) a credit against the State’s portion of the property tax that is the lesser of 100% of state property tax OR $250 per qualified position; (c) a refund of sales and use tax; and (d) a waiver of fees charged by SDAT.
  • OPPORTUNITY ZONE NON-MANUFACTURING EXISITING BUSINESS: A refundable credit against the State’s income tax of 5.75% of wages for each qualified positon.

Note 1: Tier 1 Areas include: Baltimore City, Allegany, Baltimore, Caroline, Cecil, Dorchester, Garrett, Kent, Prince George’s, Somerset, Washington, Wicomico and Worcester Counties.  Tier 1 Areas also include Opportunity Zones located in any Maryland county.  Tier 2 Areas are any areas which are not Tier 1 Areas.

Note 2: The total amount of income tax credits is capped for all businesses in a fiscal year.  The credits are issued on a first come, first-served basis.  
The total amount of sales and use tax credits is capped at $1 million in a fiscal year.


ELIGIBILITY

To qualify manufacturing businesses must:
  • Be a manufacturer primarily engaged in activities at the facility 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 post-secondary education program (e.g. tuition reimbursement).
  • Provide Notice of Intent to enroll in the program.
  • New or existing manufacturers in Tier 1 Areas must create at least 5 new Qualified Positions. 
  • A Qualified Position is a job that is full-time, pays at least 120% of State minimum wage, and is filled for 12 months before they qualify for credits.
  • State Minimum wage will be increasing beginning January 1, 2020.  Please see the schedule below:

Effective date 120% State Minimum Wage
1/1/2020
$13.20
1/1/2021$14.10
1/1/2022$15.00
1/1/2023$15.90
1/1/2024$16.80
1/1/2025$18.00

  • Existing manufacturers in Tier 2 Areas must create at least 10 new qualified jobs.
  • Begin hiring within 12 months of the Notice of Intent to Commerce.  Once a business begins hiring, it must add 5 new qualified positions (Tier 1 Areas) or 10 new qualified positions (Tier 2 Areas) within 12 months after the date of its first new hire.
  • Existing manufacturers that move their facility from one Maryland County to another after June 1, 2017 will not be eligible to participate.
  • Be certified by Commerce as a qualified business entity.

To qualify, non-manufacturing businesses must:
  • Be located in an Opportunity Zone
  • Provide Notice of Intent to Commerce before hiring.
  • Create at least 5 Qualified Positions.
  • A Qualified Position is a job that is full-time, pays at least $50,000 per year, and is filled for 12 months before they qualify for credits.
  • Offer ongoing job training or provide a post-secondary education program.
  • Begin hiring within 12 months of its Notice of Intent to Commerce.  Once a business begins hiring, it must add 5 new qualified within 12 months after the date of its first new hire.
  • Existing businesses that move their facility from one Maryland County to another after June 1, 2017 will not be eligible to participate.
  • Be certified by Commerce as a qualified business entity.
  • Non-manufacturing businesses do NOT include businesses that: (i) provide adult entertainment; (ii) are primarily engaged in retail activities (except Grocery Stores); (iii) are primarily engaged in the sale or distribution of alcoholic beverages; or (iv) are one of the following types of entities: a private or commercial golf course or country club, a tanning salon or a bailbondsman.

Businesses can enroll their project in the program and be certified as a Qualified Business Entity until June 1, 2022.  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 

  • If you are a new business, you must provide Commerce with a Notice of Intent before establishing your facility in Maryland.  If you are an existing business, you must provide Commerce with a Notice of Intent before you begin creating new jobs.
  • Commerce will then provide you with an application to enroll your project in the More Jobs for Marylanders Tax Credit Program.
  • A business that meet the program’s requirements will be certified by Commerce as a Qualified Business Entity eligible for the applicable tax credits available under the program.
  • A Qualified Business Entity must apply separately for income tax credits and the sales and use tax refund.  

Application Materials 


RESOURCES


Additional Benefits Available to Manufacturers

  • Accelerated and bonus depreciation encourages additional investment in new equipment. Accelerated and bonus depreciation is available to any Maryland manufacturer and not dependent on facility location, offering job training, creating new jobs, or providing notices of intent to Commerce.  Accelerated and bonus depreciation is available beginning January 1, 2019.
  • 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:

Kelly Adams, Tax Incentive Specialist, Tax Incentives
Maryland Department of Commerce, Office of Finance Programs
401 E. Pratt St, 17th floor
Baltimore, MD 21202
410-767-6438
 
 

FREQUENTLY ASKED QUESTIONS

  • The program requires a business to offer an ongoing job training or a post-secondary education program. Do I have to provide job training after I become a qualified business entity?

    • ​Yes, the business must continue to offer training for the duration of the 10-year benefit period to continue to be eligible for incentives.  

  • How does a non-manufacturer qualify for the tax credits?

      • Be located in an Opportunity Zone
      • Provide Commerce with a Notice of Intent before the business begins hiring.
      • Create at least 5 qualified positions.
      • Offer ongoing job training or a post-secondary education program (e.g. tuition reimbursement).
      • A non-manufacturing business DOES NOT include a business that (i) provides adult entertainment, (ii) is primarily engaged in retail activities (except Grocery Stores), or (iii) is primarily engaged in the sale or distribution of alcoholic beverages.
      • Begin hiring within 12 months after providing Commerce with a Notice of Intent.  Once a business begins hiring, it must add 5 new qualified positions within 12 months after the date of its first new hire.
      • Existing businesses that move their facility from one Maryland County to another after June 1, 2017 will not be eligible to participate.
      • Be certified by Commerce as a qualified business entity before June 1, 2022.



  • What is the More Jobs for Marylanders Incentive Program?

    • The More Jobs for Marylanders Incentive Program provides incentives to encourage the growth of Maryland manufacturers across the State and the growth of non-manufacturers in Maryland Opportunity Zones (OZs).  Incentives include tax credits to promote job creation.  Manufacturers may also qualify for accelerated and bonus depreciation 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.  Its purpose is to incentivize new or existing manufacturers to locate and expand in Maryland and to encourage non-manufacturers to locate or expand in Maryland OZs.  

  • What benefits are available to businesses that qualify for the MJM Tax Credit program?

      • TIER 1 NEW MANUFACTURING BUSINESS: (a) a refundable credit against the State’s income tax of 5.75% of wages for each qualified positon; (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 OR TIER 2 EXISTING MANUFACTURING BUSINESS: A refundable credit against the State’s income tax of 5.75% of wages for each qualified positon.
      • OPPORTUNITY ZONE NEW NON-MANUFACTURING BUSINESS: (a) a refundable credit against the State’s income tax of 5.75% of wages for each qualified positon; (b) a credit against the State’s portion of the property tax that is the lesser of 100% of state property tax OR $250 per qualified position; (c) a refund of sales and use tax; and (d) a waiver of fees charged by SDAT.
      • OPPORTUNITY ZONE NON-MANUFACTURING EXISTING BUSINESS: A refundable credit against the State’s income tax of 5.75% of wages for each qualified positon.



  • Who qualifies for the tax credits?

      1. Manufacturers primarily engaged at the facility 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 Area may qualify; existing manufacturers that expand in a Tier 1 or Tier 2 Area may qualify.  
      2. Non-manufacturers that locate or expand in Maryland OZs may qualify. A non-manufacturing business DOES NOT include a business that (i) provides adult entertainment, (ii) is primarily engaged in retail activities (except Grocery Stores), or (iii) is primarily engaged in the sale or distribution of alcoholic beverages.


  • What are Tier 1 and Tier 2 Areas?

    • Tier 1 Areas include: Baltimore City, Allegany, Baltimore, Caroline, Cecil, Dorchester, Garrett, Kent, Prince George’s, Somerset, Washington, Wicomico, and Worcester Counties.  Tier 1 Areas also include Opportunity Zones located in any Maryland county. 

      Tier 2 Areas are any areas which are not Tier 1 Areas.

      Counties are subject to change.  Please confirm status with Commerce.



  • How does a manufacturer qualify for the tax credits?

      • Be a manufacturer primarily engaged in activities at the facility 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 post-secondary education program (e.g. tuition reimbursement).
      • Provide Commerce with a 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 Areas must create at least 5 new qualified jobs. Existing manufacturers in Tier 2 Areas must create at least 10 new qualified jobs.
      • Begin hiring within 12 months after providing Commerce with a Notice of Intent.  Once a business begins hiring, it must add 5 new qualified positions (Tier 1 Areas) or 10 new qualified positions (Tier 2 Areas) within 12 months after the date of its first new hire.
      • Existing manufacturers that move their facility from one Maryland County to another after June 1, 2017 will not be eligible to participate.
      • Be certified by Commerce as a qualified business entity before June 1, 2022.

  • What is a qualified position?

    • Non-manufacturers: A qualified position is a position that pays at least $50K per year, 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.

      Manufacturers: 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. Only positions that pay 120% of the State minimum wage for that tax year will qualify.  A business has to maintain, at a minimum, the number of qualified positions that it had in the first year for the entire 10-year period in order to keep receiving the MJM credit.

      Please note that State minimum wage will change between 2020 and 2025.

      Effective dateState Minimum Wage120% State Minimum Wage
      1/1/2020$11.00 $13.20
      1/1/2021$11.75 $14.10
      1/1/2022$12.50 $15.00
      1/1/2023$13.25 $15.90
      1/1/2024$14.00 $16.80
      1/1/2025$15.00 $18.00

      *State minimum wage increases for small businesses (14 or fewer employees) follows a different schedule.

  • What are the job minimums required to qualify?

      • Tier 1 Areas: must create at least 5 qualified positions.
      • Tier 2 Areas: 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 after the date of its Notice of Intent to Commerce.  
      • Once it begins hiring, it must add 5 new qualified positions (Tier 1 Areas) or 10 new qualified positions (Tier 2 Areas) 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 business must provide notice before establishing its facility in Maryland and an existing business must provide notice before it begins creating new jobs.
      • Commerce will then provide the business with an application to enroll its project in the More Jobs for Marylanders Tax Credit Program.
      • Businesses that meet the program requirements will be certified by Commerce as a Qualified Business Entity eligible for the applicable tax credits available under the program.
      • Commerce will not certify any business after June 1, 2022.  Businesses certified prior to June 1, 2022, may qualify for the full 10-year benefit period, subject to the availability of credits.
      • Qualified Business Entities must apply separately for income tax credits and the sales and use tax refund.  
      • Existing businesses that move their facility from one Maryland County to another after June 1, 2017 will not be eligible to participate.
      • If during the 10-year benefit period, the number of qualified positions falls below the number of qualified positions claimed in the first benefit year, the business may no longer participate in the program or receive further benefits.

  • 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 Area?

    • New manufacturers that locate in Tier 2 Areas do not qualify for the MJM tax credits.  However, once a new manufacturer establishes itself in the Tier 2 Area 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 facility from one county in Maryland to another?

    • ​NO, a business that moves its 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.

  • 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, and the income tax credit will fluctuate accordingly.

  • How do I qualify for the Sales and Use Tax Refund?

    • All 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 Area.  A 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 Area will not qualify for the State real property tax credit.

      Non-manufacturers located in Maryland OZs may qualify for a state real property tax credit of the lesser of 100% of the State real property tax or $250 per qualified job.  The real property must be owned by the non-manufacturer.



  • 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:
      • Accelerated and bonus depreciation—this incentive is available to any Maryland manufacturer and not dependent on facility location, offering job training, creating new jobs, or providing notices of intent to Commerce.  Accelerated and bonus depreciation is available beginning January 1, 2019.
      • Job Training through the Partnership for Workforce Quality (http://commerce.maryland.gov/grow/partnership-for-workforce-quality-pwq) and
      • Apprenticeship Tax Credits (http://dllr.maryland.gov/employment/appr/apprtaxcreditinfo.shtml).