MARYLAND COMMERCE ACCEPTING APPLICATIONS FOR BUY MARYLAND CYBERSECURITY TAX CREDIT
Program designed to encourage purchases from Maryland cybersecurity companies
BALTIMORE, MD (October 31, 2018) – The Maryland Department of Commerce is accepting applications for the new Buy Maryland Cybersecurity Tax Credit, designed to encourage small businesses to purchase cybersecurity technologies and services from qualified Maryland cybersecurity companies. Governor Larry Hogan championed the legislation creating the tax credit, which was supported by the business community and successfully passed during the 2018 legislative session.
“Throughout our state, innovators have developed the most effective and advanced tools to thwart cyber intrusions,” said Governor Hogan. “The Buy Maryland Cybersecurity Tax Credit promotes these homegrown companies to new customers and new markets and incentivizes small businesses to protect their networks and their data.”
To register as a Qualified Maryland Cybersecurity Seller (QMCS), Maryland companies must meet certain criteria and submit an application to Maryland Commerce. Once approved, QMCS are listed on the Commerce website, gaining exposure to prospective buyers and generating additional sales.
To qualify for the Buy Maryland Cybersecurity Tax Credit, a buyer must complete and submit an application to Maryland Commerce for approval prior to making the purchase. Once qualified, the buyer is then eligible to claim a tax credit for 50 percent of the purchase price of cybersecurity technologies and services bought from a QMCS. The tax credit, which must be claimed for the tax year in which the purchase is made, is capped at $50,000 for purchases of up to $100,000. To be eligible for the tax credit in 2018, the inaugural year of the program, approved purchases from a QMCS must occur by December 31.
The tax credit is awarded on a first-come, first-served basis. Seventy-five percent of the annual funding is earmarked for cybersecurity technology purchases, with the remaining 25 percent available for cybersecurity service purchases. For 2018, Maryland Commerce has a total of $2.0 million in funding for the tax credit.
“With input from entrepreneurs and business leaders in Maryland’s cyber sector, and support from the legislature, we now have an incentive that benefits both buyers and sellers of cybersecurity,” said Maryland Commerce Secretary Mike Gill. “The Buy Maryland Cybersecurity Tax Credit helps small businesses access the information and products they need to protect their companies, and providers of cybersecurity products and services reach new customers.”
For additional information or to apply as a seller or buyer, visit Buy Maryland Cybersecurity Tax Credit.
About Maryland Commerce
The Maryland Department of Commerce stimulates private investment and creates jobs by attracting new businesses, encouraging the expansion and retention of existing companies, and providing financial assistance to Maryland companies. The Department promotes the State’s many economic advantages and markets local products and services at home and abroad to spur economic development and international investment, trade and tourism. Because they are major economic generators, the Department also supports the Arts, film production, sports and other special events. For more information, visit commerce.maryland.gov.