BALTIMORE, MD (October 26, 2021) — The Maryland Division of Commerce has launched the Maryland Innovation Funding Tax Credit score, which can assist foster the expansion of the state’s expertise sectors by incentivizing funding in early-stage corporations. This system, which has $2 million in funding for FY 2022, may even assist improve general investments in present and rising tech sectors, and increase the variety of particular person buyers in Maryland tech corporations.
Purposes from potential certified Maryland expertise corporations are actually being accepted. To submit an software, click on right here. To be eligible, an organization will need to have 50 staff or much less; an combination capitalization of no less than $100,000; and be in a qualifying tech sector, which incorporates superior manufacturing, aerospace, agriculture, synthetic intelligence, blue expertise, cybersecurity, schooling, vitality and sustainability, monetary, life sciences, quantum, and sensors and robotics.
“Maryland has lengthy been ranked as one of many prime states in our nation for innovation and expertise financial system preparedness,” stated Governor Larry Hogan. “This tax credit score will assist to additional strengthen our tech sectors by attracting new buyers and driving funding to our corporations to allow them to proceed to develop their greatest and brightest improvements.”
“We’re targeted on rising these sectors of Maryland’s financial system which can be main the best way in innovation,” stated Maryland Commerce Secretary Kelly M. Schulz. “This tax credit score is essential to supporting our tech sector statewide, however notably in our rural areas and Alternative Zones.”
“Early-stage corporations are important drivers of innovation and job progress in Maryland,” stated Marty Rosendale, CEO of the Maryland Tech Council. “The Maryland Innovation Funding Tax Credit score will encourage funding in native startups which can be competing in new industries with vital progress potential in our state. That is another vital step towards our objective of constructing Maryland the primary innovation financial system for expertise within the nation.”
Beginning November 1, buyers that plan to spend money on a specific certified Maryland expertise firm can submit their functions for approval, with a deadline of November 15 at 11:59 p.m. As a part of this system, buyers will obtain a refundable earnings tax credit score equal to 33 p.c of an eligible funding as much as $250,000 in tax credit. The quantity of the earnings tax credit score will increase to 50 p.c of an eligible funding as much as $500,000 in tax credit if the corporate is positioned in Allegany, Dorchester, Garrett or Somerset County. Enhanced tax credit are additionally accessible for eligible investments made in sure expertise corporations positioned in Alternative Zones. Further eligibility necessities may be discovered right here.
All authorized buyers can then take part in a web based registration on November 16 beginning at 9 a.m. to find out the first-come, first-served order by which funds are made accessible.
