Program designed to encourage investment in Maryland cybersecurity companies
BALTIMORE, MD (September 11, 2018) – The Maryland Department of Commerce is now accepting applications for the Cybersecurity Investment Incentive Tax Credit, designed to attract investment in Maryland cybersecurity companies. The cybersecurity tax credit program, which originally provided a tax credit to companies receiving the investment, was revised through legislation championed by Governor Larry Hogan and passed during the 2018 Maryland General Assembly session.
“Maryland is home to the nation’s premier federal cybersecurity agencies, and we are fortunate to have more and more entrepreneurs from those organizations launching new companies and developing cutting-edge technologies right here our state,” said Governor Hogan. “Our administration is committed to incentivizing investors in cybersecurity startups by providing access to much-needed capital, ensuring that Maryland remains the cyber capital of America.”
Through the tax credit program, venture capitalists, angel investors, and others investing at least $25,000 in a Qualified Maryland Cybersecurity Company (QMCC) may be eligible for a refundable tax credit for 33 percent of the investment. Investors who invest in a cybersecurity business in Allegany, Dorchester, Garrett, or Somerset counties may qualify for a tax credit of 50 percent of their investment.
To qualify for the tax credit, investors must submit an application to Maryland Commerce prior to investing in a company. Qualified cybersecurity companies must be a for-profit business headquartered in Maryland, engaged primarily in the development of proprietary cybersecurity technology, having fewer than 50 employees, and meet other criteria. In addition, companies must apply to Maryland Commerce to be designated as a Qualified Maryland Cybersecurity Company. Applications and additional information for investors and companies are available online.
“Maryland’s cybersecurity sector is a hotbed of ideas, imagination and innovation, and investors are taking notice,” said Maryland Commerce Secretary Mike Gill. “Offering an incentive to investors is a great way to attract even more capital to the entrepreneurs who are working to keep our nation safe and secure.”