Maryland Governor Larry Hogan signed into law House Bills 173 and 175, extending the expiration dates of the Maryland Job Creation Tax Credit and the Maryland Research and Development (R&D) Credit, respectively. The Maryland R&D Tax Credit was updated and will now expire on June 30, 2022 (an extension of one year). The Maryland Job Creation Tax Credit will now expire on January 1, 2022, a two-year extension from the previous expiration date of January 1, 2020.
Maryland offers two versions of the R&D Tax Credit, the Basic R&D Credit, and the Growth R&D Tax Credit. These two programs work together, with the “Basic” credit representing 3% of eligible R&D expenditures, up to a baseline amount. The “Growth” Credit is offered in the amount of 10% of eligible R&D expenses that exceed the baseline. Both types of R&D credits are refundable if earned by entities qualifying as “small businesses.”
Maryland’s Job Creation Tax Credit encourages new job creation by offering income tax credits in the amount of $3,000 per eligible new full-time position. This amount is increased to $5,000 per new full-time job if the qualifying project is in a “revitalization area.”
TECHNICAL INFORMATION CONTACTS:
Allea Newbold
Principal
Ryan
813.228.7100
allea.newbold@ryan.com
Michael Falleroni
Manager
Ryan
412.535.4400
michael.falleroni@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.