More Jobs for Marylanders Incentive Program

Changes were made to the More Jobs for Marylanders (MJM) incentive program, effective for any business enrolled on or after June 1, 2022. Program changes are described below. If your business received a Program Enrollment Certificate of Approval prior to June 1, 2022, the eligibility requirement and program benefits are reflected in this statute in effect prior to June 1, 2022, as well as this fact sheet.

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.

Regulations governing the application procedure and priority of funding became final on April 4, 2022. Initial Tax Credit Applications will no longer be accepted on a rolling basis and must be submitted by enrolled businesses during an application period established after July 1 of each year. This year, the application period will be open from September 15, 2022 through November 21, 2022.

BENEFITS

MJM provides a refundable income tax credit to eligible businesses that locate or expand in the State and create a minimum number of net new full-time positions.

A business enrolled on or after June 1, 2022 is eligible for a refundable credit against the State's income tax of 4.75% of wages for each qualified position. The refundable income tax credit is available for a 5- or 10-year consecutive benefit period depending on the location of the enrolled project.

If the project is located in a Tier 1 Area, the refundable income tax credit is available for 10-year consecutive benefit period.
If the project is located in a Tier 2 Area, the refundable income tax credit is available for 5-year consecutive benefit period.

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 in a fiscal year. The initial income tax credits are issued based on the following priority:

An eligible project in a Tier 1 Area that received a final certificate in the previous fiscal year.
An eligible project in a Tier 2 Area that received a final certificate in the previous fiscal year.
An eligible project in a Tier 1 Area that did not receive a final certificate in the previous fiscal year.
An eligible project in a Tier 2 Area that did not receive a final certificate in the previous 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).
New or existing manufacturers in Tier 1 Areas must create at least 10 new Qualified Positions.
Existing manufacturers in Tier 2 Areas must create at least 20 new Qualified Positions.
A Qualified Position is a job that is full-time, pays at least 150% of State minimum wage, and is filled for 12 months before they qualify for credits.
Begin hiring within 12 months of the Notice of Intent to Commerce. Once a business begins hiring, it must add 10 new Qualified Positions (Tier 1 Areas) or 20 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.

MJM Wage Requirement Effective for Businesses Enrolled on or after June 1, 2022

Effective date	150% State Minimum Wage
1/1/2022	$18.75
1/1/2023	$19.88
1/1/2024	$21.00
1/1/2025	$22.50

To qualify, non-manufacturing businesses must:

Be located in an Opportunity Zone
Create at least 10 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 10 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.
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.

HOW TO APPLY

Declaration of Intent - A business may not claim any jobs created prior to notifying Commerce in writing of its intent to seek certification for the More Jobs for Marylanders incentive program. If the company submitted a Notice of Intent before June 1, 2022, but did not receive an Enrollment Certificate before June 1, 2022, the company must submit a new Notice of Intent and only jobs created after the new Notice of Intent is submitted to Commerce may be claimed.
Certification - A business must be enrolled in the More Jobs for Marylanders incentive program by receiving a Program Enrollment Certificate of Approval prior to June 1, 2024. Enrollment applications are available from Commerce.
Job Creation Minimums - The business must create at least 10 or 20 new, full-time Qualified Positions at the project. The positions must be full-time, pay at least 150% of state minimum wage, be filled for 12 months, and be a "net new" job to Maryland. The business must begin hiring within 12 months of its Notice of Intent to Commerce and it must add the minimum number of new qualified within 12 months after the date of its first new hire.
Benefit Period - The business must submit an Initial and Final Tax Credit Application each year during its 5- or 10-year consecutive benefit period. The Initial Tax Credit Application reserves the income tax credit. The business may submit an Initial Tax Credit Application no sooner than July of the fiscal year following the close of the first fully completed fiscal year that the business is enrolled in the program. The business may submit the Final Tax Credit Application when the jobs have been filled for 12 months to receive the income tax credit.

Application Materials

Notice of Intent Form

After submitting a Notice of Intent form, Applicants must apply through Commerce's online system. Please first register for an account, then click on the Apply Online button below.

RESOURCES

More Jobs for Marylanders Regulations (COMAR 24.05.27)

For businesses enrolled on or after June 1, 2022:

For businesses enrolled before June 1, 2022:

Additional Benefits Available to Manufacturers

This incentive is available to any Maryland manufacturer and is not dependent on participation in the More Jobs for Marylanders incentive program. Accelerated and bonus depreciation is available beginning January 1, 2019.

Maryland Sales and Use Tax Exemption: The Maryland sales and use tax does not apply to sales of machinery and equipment used in production activities, sales of tangible personal property for consumption in production activities, or sales of tangible personal property for resale or incorporation as a material or part of other tangible personal property produced for sale.
Job Training through the Partnership for Workforce Equality: This program provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. Matching grant funds are used to reimburse up to 50% of the costs of qualified projects.

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 5-year or 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 10 qualified positions if enrolled on or after June 1, 2022.
  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 create at least 10 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.
What is the More Jobs for Marylanders Incentive Program?
- The purpose of the More Jobs for Marylanders incentive program is to incentivize the creation of new manufacturing jobs in the State and attract new businesses to and encourage the expansion of existing businesses within Opportunity Zones.
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?
- A business enrolled is eligible for a refundable credit against the State's income tax of 4.75% of wages for each qualified position. The refundable income tax credit is available for a 5- or 10-year consecutive benefit period.
  If the project is located in a Tier 1 Area, the refundable income tax credit is available for a 10-year consecutive benefit period.
  If the project is located in a Tier 2 Area, the refundable income tax credit is available for a 5-year consecutive benefit period.
Who qualifies for the tax credits?
- 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.
  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.
  Manufacturers must provide the Notice of Intent to Commerce before creating new jobs.
  Manufacturers in Tier 1 Areas must create at least 10 new qualified jobs. Manufacturers in Tier 2 Areas must create at least 20 new qualified jobs.
  Once a business begins hiring, it must add 10 new qualified positions (Tier 1 Areas) or 20 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, 2024.
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: For businesses enrolled on or after June 1, 2022, a qualified position is a position that pays at least 150% 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 150% 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 5- or 10-year period in order to keep receiving the MJM credit.
  
  Please note that State minimum wage will change between 2020 and 2025.
  
  Effective date State Minimum Wage 120% 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?
- For businesses enrolled before June 1, 2022:
  Tier 1 Areas: Must create at least 5 qualified positions.
  Tier 2 Areas: Must create at least 10 qualified positions.
  For businesses enrolled on or after June 1, 2022:
  Tier 1 Areas: Must create at least 10 qualified positions.
  Tier 2 Areas: Must create at least 20 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 10 new qualified positions (Tier 1 Areas) or 20 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 business must provide notice to Commerce 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.
  Commerce will certify the business that meets the program requirements as a "Qualified Business Entity" and enroll the project in the 5- or 10-year consecutive benefit period for the income tax credit.
  Credits are subject to availability based on the priority set forth in the regulations.
  Qualified Business Entities may apply for the Initial Income Tax Credit during an application period established by Commerce.
  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 5-year or 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 businesses enrolled on or after June 1, 2022, the income tax credit is equal to 4.75% multiplied by the total wages paid for each 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 is not dependent on participation in the More Jobs for Marylanders incentive program. Accelerated and bonus depreciation is available beginning January 1, 2019.
  Maryland Sales and Use Tax Exemption: The Maryland sales and use tax does not apply to sales of machinery and equipment used in production activities, sales of tangible personal property for consumption in production activities, or sales of tangible personal property for resale or incorporation as a material or part of other tangible personal property produced for sale.
  Job Training through the Partnership for Workforce Quality: This program provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. Matching grant funds are used to reimburse up to 50% of the costs of qualified projects.

Funding & Incentives

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