Maryland Commerce Launches Maryland Innovation Investment Tax Credit
Refundable credit seeks to foster growth of state’s tech sector, boost investment
BALTIMORE, MD (October 26, 2021) — The Maryland Department of Commerce has launched the Maryland Innovation Investment Tax Credit, which will help foster the growth of the state’s technology sectors by incentivizing investment in early-stage companies. The program, which has $2 million in funding for FY 2022, will also help increase overall investments in current and emerging tech sectors, and boost the number of individual investors in Maryland tech companies.
Applications from potential qualified Maryland technology companies are now being accepted. To submit an application, click here. To be eligible, a company must have 50 employees or less; an aggregate capitalization of at least $100,000; and be in a qualifying tech sector, which includes advanced manufacturing, aerospace, agriculture, artificial intelligence, blue technology, cybersecurity, education, energy and sustainability, financial, life sciences, quantum, and sensors and robotics.
“Maryland has long been ranked as one of the top states in our nation for innovation and technology economy preparedness,” said Governor Larry Hogan. “This tax credit will help to further strengthen our tech sectors by attracting new investors and driving funding to our companies so they can continue to develop their best and brightest innovations.”
“We are focused on growing those sectors of Maryland’s economy that are leading the way in innovation,” said Maryland Commerce Secretary Kelly M. Schulz. “This tax credit is key to supporting our tech sector statewide, but particularly in our rural areas and Opportunity Zones.”
“Early-stage companies are critical drivers of innovation and job growth in Maryland,” said Marty Rosendale, CEO of the Maryland Tech Council. “The Maryland Innovation Investment Tax Credit will encourage investment in local startups that are competing in new industries with significant growth potential in our state. This is one more important step toward our goal of making Maryland the number one innovation economy for technology in the nation.”
Starting November 1, investors that plan to invest in a particular qualified Maryland technology company can submit their applications for approval, with a deadline of November 15 at 11:59 p.m. As part of the program, investors will receive a refundable income tax credit equal to 33 percent of an eligible investment up to $250,000 in tax credits. The amount of the income tax credit increases to 50 percent of an eligible investment up to $500,000 in tax credits if the company is located in Allegany, Dorchester, Garrett or Somerset County. Enhanced tax credits are also available for eligible investments made in certain technology companies located in Opportunity Zones. Additional eligibility requirements can be found here.
All approved investors can then participate in an online registration on November 16 starting at 9 a.m. to determine the first-come, first-served order in which funds are made available.
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.