Changes were made to the One Maryland Tax Credit, effective for any business that applies for Final Certification beginning July 1, 2018. Program changes are described below. If your business received a Final Certificate of Eligibility prior to July 1, 2018, click here for a copy of the statute in effect prior to July 1, 2018.
One Maryland Jurisdictions
The following counties are Tier 1 for the One Maryland Tax Credit.
- Baltimore City
The amount of income tax credit that a business will qualify for depends on the amount of capital investment it makes in the project and the number of new qualified jobs it creates in a 24 month period. A business may qualify for the following maximum credit amounts:
- For businesses that create 10-24 qualified positions: maximum $1 million in credits based on eligible project costs.
- For businesses that create 25-49 qualified positions: maximum $2.5 million in credits based on eligible project costs.
- For businesses that create at least 50 qualified positions: maximum $5 million in credits based on eligible project costs.
Location - A business must locate or expand in a "Priority Funding Area" (PFA) in a Tier 1 County. Tier 1 Counties are subject to change. Please verify with the Maryland Department of Commerce (Commerce) that the project location is in a PFA and Tier 1 County.
Declaration of Intent - A business may not claim any expenses incurred or jobs created prior to notifying Commerce in writing of its intent to seek certification for a One Maryland Tax Credit.
Certification - A business must be certified as a qualified business entity eligible for the One Maryland Tax Credit. Applications for certification are available from Commerce.
Job Creation Minimums - The business must create at least 10 new, full-time qualified positions at the project within 24 months. However, to receive the maximum $5 million credit, the business must have at least 50 new qualified positions within 24 months.
- The positions must be full-time, pay 120% of State Minimum Wage, be filled for 12 months, and be a "net new" job to Maryland. The business must create the minimum number of jobs in a 24-month period.
- As of July 1, 2018, 120% of State Minimum Wage is $12.12/hour
- Have at least $500,000 of eligible costs.
- The facility must be engaged in an
The business may not claim both the One Maryland Tax Credit and Job Creation Tax Credit in the same tax year.
The application process requires the business to declare its intent to Maryland Commerce in writing prior to incurring eligible costs or creating new, qualified jobs. The business is encouraged to submit a Preliminary Application, along with the Employment Affidavit. The business must be certified as eligible for the tax credit by submitting a Final Application.
For Businesses Certified Before July 1, 2018
For more information about the One Maryland Tax Credit contact:
Maryland Department of Commerce, Office of Finance Programs
FREQUENTLY ASKED QUESTIONS
The following Q & As apply to businesses receiving a Final Certificate of Eligibility from the Department of Commerce after July 1, 2018.