One Maryland Tax Credit
Businesses that invest in an economic development project in Wicomico County and create new full time jobs may qualify for up to $5 million in state income tax credits.
For more information, eligibility guidelines and application procedures visit, Maryland Commerce
Opportunity Zones encourage long-term investments in selected areas of communities and can offer innovative financing options through Opportunity Funds. Explore those areas within Wicomico County and call us for additional details.
Refundable State Income Tax Credit
Effective on July 1st, 2018, new & existing manufacturers in Wicomico County are eligible for a refundable State income tax credit of 5.75% of wage per new position for the creation of 5 or more new jobs under the More Jobs for Marylanders Act. The 10 year program requires application, certification and an accompanying training or post secondary education program.
We welcome the opportunity to explore our resources for the capital that you need. Financing can include loans, loan guarantees, equity participation, bond issuance and venture capital investments. We’ll locate the capital required and under the terms and additions that best meet your needs.
SWED works with both public and private partners in securing financing. Sample programs include (but not limited to) U.S.D.A. loans and loan guarantees, bond issuance and insurance, contract financing, SBA 504, CDBG, MEDAAF, MIDFA, MSBDFA, Maryland Capital Enterprises, VLT and much more.
For more information and to discuss specific projects, contact SWED at 410.749.1251.
Delmarva Power (an Exelon company) is offering a discount for locating to or expanding a business in Wicomico County. Participating businesses in Wicomico receive a 20-percent discount off the electric delivery portion of their new facility’s energy bill for five years. The program is available to both new and existing commercial businesses of all sizes and a variety of expansion options are available including constructing a new building, purchasing or leasing a vacant building or expanding an existing facility. For more information, eligibility and application, visit EDGE Maryland
The Commercial Property Assessed Clean Energy program (PACE) can provide longer term loans than most conventional financing for energy efficient and renewable energy projects.
To learn more visit www.md-pace.com or call SWED at 410-749-1251
Partnership for Workforce Quality
PWQ provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. Grants are used to increase the skills of existing workers for new technologies and production processes, improve employee productivity and increase employment stability. Matching grant funds are used to reimburse up to 50% of the costs of qualified projects.
Contact SWED at 410.749.1251 or visit Maryland Commerce for more information and to apply for the program.
Maryland Business Works
The Maryland Department of Labor, in consultation with the Maryland Department of Commerce, has returned the Maryland Business Works program, a highly successful incumbent worker training program.
Training funds can be used to upgrade the skills of current employees while also creating opportunities for new hires in in-demand occupations and skills
- Invests in Maryland Private Sector Businesses — Private sector businesses headquartered, or having a physical presence, in Maryland are eligible to apply. However, funds will be primarily targeted to small businesses with 100 employees or fewer; local and regional businesses providing in-demand products or services; and, businesses which are facing potential layoffs.
- Provides True Partnership with Businesses — There is a dollar-to-dollar match requirement, and a $4,500 training cap funding level that may be awarded to a specific trainee for a project or series of projects.
- Meets Businesses’ Training Needs – The Program funds classroom-based training, in-house staff training, apprenticeships, and other opportunities for Maryland’s businesses as they create and foster their talent pipeline.
Get Started Now…
- View the One Pager
- Maryland Business Works Program Requirements
- Maryland Business Works Application
- Maryland Business Works Applications Checklist
Enterprise Zone Maps:
Businesses locating within an enterprise zone may be eligible for real property and state income tax credits. Upon application and approval, the zone offers a ten year credit against local real property taxes on a portion of real property improvements. Credit is 80% the first five years, and decreases 10% annually to 30 percent in the tenth and final year. The zone also offers a one time $1,000 credit per new worker on state income taxes.
Example Calculation: ABC, Inc. owns land with a market value of $200,000. The firm elects to construct a 100,000 sq ft plant (at a cost of $30 per sq. ft.) that will house 200 employees. The plant is located within the Salisbury Enterprise Zone.
|Property Tax Rates|
|Salisbury||$ .9832 per $100|
|Wicomico||$ .9398 per $100|
|Total Tax Rate||$ 1.923 per $100|
|Property Tax Credits|
|Current assessed value of land:||$200,000|
|Assessed value with improvements (100,000 x $30 + $200,000)||$3,200,000|
|Annual Tax: ($3,200,000 / $100) x $1.923||$61,536|
|Ten year taxes: ($61,536 x 10)||$615,360|
|Assessment differential: ($3,200,000 – $200,000)||$3,000,000|
|Tax credits applicable to:||$3,000,000|
|Total tax credit (Years 1-5) ($3,000,000 / $100) x $1.923 x 80% x 5||$230,760|
|Total tax credit (Years 6-10) ($3,000,000 / $100) x $1.923 x 50% x 5||$144,225|
|Total Property Tax Credits ($226,632 + $141,645)||$374,985|
|State Income Tax Credits|
|Enterprise Zone income tax credit: ($1,000 x 200 emp’s)||$200,000|
|Total Tax Credits||$574,985|
The Regional Institution Strategic Enterprise (RISE) zone offers real property tax credits of 80% for 5 years on the improved assessed value of eligible property within the zone. In addition the uses of tax increment financing are enhanced.
R.I.S.E Zone link for more information or contact SWED at 410-749-1251.
The federal government’s goal is to award at least three percent of all federal contracting dollars to HUBZone-certified small businesses each year.
HUB Zone link for more information or contact SWED at 410-749-1251.
Job Creation Tax Credits
Maryland provides a $3,000 tax credit per eligible job, and $5,000 if in a revitalization area, for businesses that create new jobs to encourage businesses expanding or relocating to Maryland. The credit earned by a qualified business entity may not exceed $1 million per credit year. The business must create 60 new, full-time jobs during a 24-month period. For a business that locates or expands in a Priority Funding Area, the minimum is 25 jobs. Outside of a Priority Funding Area, the requirement may be reduced to as few as 30 jobs if the aggregate annual salary for new employees exceeds $2.85 million for 2009. All positions must be filled for 12 months.
If the credit is more than the tax liability, the unused credit may be carried forward for 5 years following the credit year. The credit may be recaptured if the business experiences job losses. Find out more here
Manufacturing Equipment and Machinery
Maryland does not impose a personal property tax on business. Wicomico County offers a 100% personal property tax exemption on manufacturing equipment and machinery.
Sales Tax Exemptions
Wicomico County does not impose a sales tax. Maryland exempts sales tax from the following items:
Sales of capital manufacturing machinery and equipment, including equipment used for testing finished products, assembling, processing or refining, in the generation of electricity, or used to produce or repair production equipment.
Sales of tangible personal property consumed directly in manufacturing, testing of finished products, assembling, processing or refining, or in the generation of electricity, if consumed within one year after it is first used in a manufacturing process.
Sales of equipment or materials used or consumed in research and development.
Sales of fuels used in manufacturing, except those used to cool, heat, light the manufacturing facility. All fuels through a particular meter are exempt if more than half are used directly in manufacturing.
Sales of computer programs reproduced for sale or incorporated in whole or in part into another computer program intended for sale.
Sales of customized computer software.
Arts and Entertainment District
An Arts and Entertainment District is a geographically designated area in which a high concentration of arts and entertainment facilities serve as an anchor attraction. The intent of the District is to stimulate neighborhood revitalization, improve the attractiveness and safety of areas, stimulate business activity (particularly in the evenings and on weekends), attract residents and visitors and build the tax base.
The tax incentives available upon the designated Arts and Entertainment District include: an income tax subtraction modification for qualifying residing artists; a property tax credit; and an exemption from the Admissions and Amusement Tax.
For more information, contact Deborah Stam, Director of Community Development, City of Salisbury at 410-334-3031, or visit www.salisburyarts.com