Program at a Glance

Biotechnology Investment Incentive Tax Credit
Maryland Department of Business and Economic Development

State: Maryland
Program Category: Tax
Program Type: Tax credit
Business Need(s) Addressed: Tech & product development, Tax/Regulatory burden reduction
Program Industry: 54 - Professional, Scientific, and Technical Services
Geographic Focus: Statewide

Last Modified: 8/2/2017

Website

Contact Information

Mark Vulcan
Maryland Department of Business and Economic Development
Division of Business Development, Tax Incentives Group
401 East Pratt Street
Baltimore, MD 21202

Phone: (410) 767-6438
MVulcan@choosemaryland.org

Program Details

Program Description:

An individual or business may be allowed a tax credit of up to 50% of the amount contributed to a qualified Maryland biotechnology company, not to exceed $250,000.

Program Objective:

To encourage investment in seed and early stage, privately held bitoech companies.

Program Specifics:

BIITC provides an income tax credit equal to 50% of an eligible investment in a QMBC up to $250,000 for each QMBC per fiscal year. Total credits issued during the fiscal year cannot exceed the budget amount and are, therefore, issued on a first come basis. The credit is refundable if the investor has no Maryland income tax liability.

Eligibility and Application

Eligibility Requirements:

Qualified investor is an individual or any entity that invests at least $25,000 in a QMBC and is required to file an income tax return in any non-tax haven jurisdiction. An investor is limited to a credit of $250,000 for each QMBC per fiscal year. QMBC is a company that:

1) has its headquarters and base of operations in Maryland;
2) has fewer than 50 employees;
3) is in active business no longer than 10 years (up to 12 years if in the process of regulatory approval) and once certified as a QMBC, may remain eligible for a qualified investment for up to 10 years; and
4) certified by DBED as a QMBC.

A single QMBC may not receive for the benefit of investors, in total no more than 15% of the program's fiscal year funding.

Application Information:

Applications are reviewed and approved based on the order received. At least 30 calendar days but no more than 60 calendar days prior to making a qualifying investment, the qualified investor submits a completed application to DBED. Within 30 calendar days of receiving the application, DBED will issue an initial tax credit certificate certifying the amount of any approved tax credits to a Qualified Investor or offer rejection. A qualified investor has 30 days after the date DBED issues the tax credit to make an investment in QMBC. Within 10 days of making the investment, the qualified investor shall provide written notice with supporting documentation to DBED. If the qualified investor fails to provide notice of investment to DBED within 40 days after the issuance of the initial tax credit certificate DBED shall rescind the certificate. Based on the actual investment DBED shall issue a final tax credit certificateR03;.

Additional application requirements are available on the website.

Statutory Background

Program Start:
2005

Program Finish:
No Date Available

Program Administration Type:
Discretionary

Legal Citation:
Md. TAX-GENERAL Code Ann. 10-725 (2014)

Fiscal Information

Data provided are the most recent available.

Tax Type:
Corporate Income Tax (Statute Art. TG Sec. 10-725)
2012 - $700,000
Other (Statute Art. TG Sec. 10-725)
2012 - $7,300,000