The Maryland Innovation Investment Tax Credit program has officially launched. The program, which has $2M in funding for Fiscal Year 2022, will also help increase overall investments in current and emerging tech sectors, and boost the number of individual investors in Maryland.
The Maryland Innovation Investment Tax Credit provides a refundable income tax credit to a qualified investor for an eligible investment made in a qualified Maryland technology company (“QMTC”). The amount of the income tax credit is equal to 33% of an eligible investment in a QMTC up to $250,000 in tax credits. The amount of the income tax credit increases to 50% of an eligible investment in a QMTC up to $500,000 in tax credits if the QMTC is located in Allegany, Dorchester, Garrett, or Somerset County. Enhanced tax credits are also available for eligible investments made in certain QMTCs located in Opportunity Zones.
The income tax credit is subject to certain limitations. A single QMTC may not receive the benefits of total credits exceeding 15% of the total fiscal year appropriation. A single technology sector cannot receive the benefit of total credits exceeding 25% of the fiscal year appropriation. Total credits issued during the fiscal year cannot exceed the appropriated amount and are, therefore, issued on a first-come, first-served basis.
The credit is refundable to the extent that the amount of the credit exceeds the qualified investor’s Maryland income tax liability.
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.
Other limitations and eligibility criteria apply. Application required. Deadlines apply.
Find out if your business is eligible and move forward by speaking to an advisor at Ashmore Consulting, today.