Paycheck Protection Program (PPP) loans have been applied for, employer retention credits have been evaluated, and businesses may have already been through several rounds of small business grant applications in their state. What’s next?
In Maryland, the most recent form of support will likely come in the form of property tax credits. On May 18, 2021, Governor Hogan approved House Bill 1137, Property Tax Credit – Business Entities – State of Emergency, updating Maryland Property Tax Code Section 9-266, empowering local jurisdictions to offer real and/or personal property tax credits on their portion of taxes to businesses affected by a state of emergency—the most salient being COVID-19-related emergency orders. This legislation went into effect on June 1, 2021, applicable to tax years beginning after June 30, 2021.
While the city of Baltimore was specifically called out in the legislation and is likely the primary target of this change, all counties and incorporated cities in Maryland now have this ability. At the local level, each jurisdiction will need to pass and enact local resolutions to activate property tax credits. Amount and duration of credits are determined at the local level. Similar credits in the city of Baltimore are offered for 10 years on a decreasing scale beginning at up to 80%.
Ryan’s Credits and Incentives team continues to monitor each county and the city of Baltimore for developments, as each jurisdiction considers this authority and moves to define its parameters, eligibility requirements, application process and procedure, and awarding criteria.
TECHNICAL INFORMATION CONTACTS:
Allea Newbold
Principal
Ryan
813.371.0566
allea.newbold@ryan.com
Savannah Jermance
Director
Ryan
505.503.4987
savannah.jermance@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.