The More Jobs for Marylanders program sunsetted on June 1, 2024. In order to participate in the program, a company must have received an Enrollment Certificate prior to June 1, 2024.
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.
More Jobs for Marylanders promotes the growth of manufacturing in Maryland by providing tax incentives for manufacturing job creation. 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. The application period is open only to businesses that have received an Enrollment Certificate and have been enrolled in the program for at least a full fiscal year.
The next initial application period for FY25 will be posted on this webpage shortly.
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).
- Manufacturers in Tier 1 Areas must create at least 10 new Qualified Positions.
- 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 | $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 - Commerce is no longer accepting Notices of Intent for this program.
-
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. Commerce is no longer accepting Enrollment Applications for this program.
-
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.
RESOURCES
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.
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:
FREQUENTLY ASKED QUESTIONS
