Maryland Innovation Investment Tax Credit (IITC)

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This tax credit program has sunset and is no longer operational. Commerce is not accepting applications. If you have any questions, please contact Jason Sobel at jason.sobel1@maryland.gov.

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IITC fosters the growth of Maryland's technology sectors by incentivizing investment in early-stage companies with the goal of increasing the number of companies developing innovative technologies in Maryland, increasing overall investments in current and emerging technology sectors, and increasing the number of individual investors actively investing in Maryland technology companies. BENEFIT

IITC provides an income tax credit equal to 33% of an eligible investment in a Qualified Maryland Technology Company (QMTC) up to $250,000 in tax credits, or 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 Opportunity Zone fund investors who invest in QMTCs located in Opportunity Zones. The Level 1 enhancement provides an income tax credit equal to 33% of an eligible investment in an eligible QMTC up to $300,000 in tax credits. The Level 2 enhancement provides an income tax credit equal to 50% of an eligible investment in a QMTC up to $500,000. Please review the Opportunity Zone Enhancements website for more information.

Enhanced tax credits are also available for investors who invest in certain QMTCs located in RISE Zones. The QMTC’s technology must have been developed at a qualified institution within that RISE Zone and the QMTC has been in active business no longer than 7 years. The RISE Zone enhancement provides an income tax credit equal to 50% of an eligible investment in an eligible QMTC up to $500,000 in tax credits. Please review the RISE Zone program website for more information.

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.

Please continue to check this page for the most recent information regarding the availability of tax credits. ELIGIBILITY

A qualified investor is an individual or entity that invests at least $25,000 in a Qualified Maryland Technology Company (QMTC) and is required to file an income tax return in any jurisdiction.

A QMTC must be engaged in an eligible technology sector and meet following minimum requirements as certified by the Department of Commerce (Commerce): Organized for profit, and engaged in the research, development, or commercialization of innovative and proprietary technology in an eligible technology sector; Has its headquarters and base of operations in Maryland; Owns or has properly licensed any proprietary technology; Has an aggregate capitalization of at least $100,000; Has fewer than 50 full-time employees; Has not participated in the Innovation Investment Incentive Tax Credit program for more than three prior fiscal years; Does not have its securities publicly traded securities on any exchange; and Is in good standing with the Maryland Department of Assessments and Taxation, is current on the payment of all tax obligations, and is not in default under any contract with the State of Maryland or any of its units or subdivisions.

The eligible technology sectors are advanced manufacturing, aerospace, agriculture, artificial intelligence, blue technology, cybersecurity, education, energy and sustainability, financial, life sciences, quantum, and sensor and robotics.

A company that…

Topic areas: General and Cross-cutting R&D.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Maryland Innovation Investment Tax Credit (IITC) is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.