TAX CREDITS & FUNDING

The Department of Business and Economic Development (DBED) is very pleased to be able to report that there are now some new as well as expanded resources available to Maryland businesses. Below are some of the new tools and resources available to assist businesses and keep our Maryland economy moving forward.

DBED has enhanced the Maryland Industrial Development Financing Authority (MIDFA) program to increase support to small business lending in a much streamlined process while preserving the portfolio credit quality. The program mirrors the simplicity of the SBA Express but allows greater bank flexibility. To qualify a project, contact Greg Cole, Executive Director at 410-767-6376 or E-mail: gcole@choosemaryland.org

If a business is contemplating hiring new full time employees they should check out the new Job Creation Recovery Tax Credit (JCRTC) before hiring. An employer may receive a maximum credit of $5,000, for each qualified employee, up to a total of $250,000. The credit may be claimed on the employer’s tax return that covers the time that the position is filled; positions filled for less than the twelvemonth maximum provide the employer with a pro rata credit of $416.67 for each month that the position is filled. If the credit exceeds the employer’s income tax liability for that year, the employer is entitled to a refund payment. A non-profit organization may apply a credit against unrelated business income taxes and may receive a refund if the credit exceeds that liability
http://www.dllr.state.md.us/taxcredit/jcrtcflyer.pdf

The Federal Government has also created a tax credit for hiring unemployed individuals of up to $7,500 that can be piggybacked with the Maryland JCRTC.
http://www.irs.gov/newsroom/article/0,,id=220326,00.html

There are also two Counties in Maryland where tax credits are available and can be piggybacked on the State and Federal tax credits
Washington County:
http://www.hagerstownedc.org/newsDetail.aspx?id=133

Montgomery County:
http://www.montgomerycountymd.gov/dedtmpl.asp?url=/content/ded/Financing/new-jobs-tax-credit.asp