Opportunity Zone Enhancement Credits (State)

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The State of Maryland provides enhancements to several of its economic development tax credit programs for businesses located in Maryland Opportunity Zones that meet certain requirements. BENEFIT

The following is a list of tax credit programs that offer enhanced credits for Maryland Qualified Opportunity Zone Businesses. Businesses can apply for Level 1 or Level 2 Enhancements. The credit amounts listed below are in substitution of, not in addition to, the credits the business may qualify for under each program.

Job Creation Tax Credit Enhanced Credits Level 1: $3,075 per qualified position or $5,125 per qualified position in a revitalization area. Level 2: $3,300 per qualified position or $5,500 per qualified position in a revitalization area. Learn more about the Job Creation Tax Credit.

One Maryland Tax Credit Enhanced Credits (for businesses that create at least 50 qualified positions) Level 1: up to $5,125,000 of eligible project cost. Level 2: up to $5,500,000 of eligible project costs. Learn more about One Maryland.

More Jobs for Marylanders Income Tax Credit Level 1: 6% of wages for each qualified position. Level 2: 6.25% of wages for each qualified position. Learn more about More Jobs for Marylanders.

Enterprise Zone Income Tax Credit Level 1: $1,025 per new job for the standard credit, and 7.5% increase per year for economically disadvantaged employees ($3,225, $2,150, $1,075). Level 2: $1,200 per new job for the standard credit and 10% increase per year for economically disadvantaged employees ($3,300, $2,200, $1,100). Learn more about Enterprise Zone Income Tax Credits.

Enterprise Zone Focus Area Income Tax Credit Level 1: $1,540 per new job for the standard credit, and 7.5% increase per year for economically disadvantaged employees ($4,838, $3,225, $1,613). Level 2: $1,750 per new job for the standard credit and 10% increase per year for economically disadvantaged employees ($4,950, $3,300, $1,650). Learn more about Enterprise Zone Focus Areas.

Biotechnology Investor Incentive Tax Credit (BIITC)

If a qualified Opportunity Fund is a qualified investor under BIITC and the QMBC it is investing in is located in an Opportunity Zone: Level 1: enhancement is 65% of the investment not to exceed $575,000. Level 2: enhancement is 75% of the investment not to exceed $750,000. Learn more about the Biotechnology Investor Incentive Tax Credit. ELIGIBILITY

To qualify for the Opportunity Zone Enhancement program, the business must first meet the qualifications of the underlying tax credit program for which it is applying. For example, to qualify for the Job Creation Tax Credit (JCTC) enhanced credit of $3,075 per qualified position (instead of the standard JCTC credit of $3,000), the business must first meet the qualifications of the JCTC program.

For the Job Creation, One Maryland, More Jobs for Marylanders, Enterprise Zone and Enterprise Zone Focus Area income tax credits, the business must be a Qualified Opportunity Zone Business (as defined in § 1400Z-2 of the Internal Revenue Code) and have received an investment from a Qualified Opportunity Fund (as defined in § 1400Z-2 of the Internal Revenue Code).

For the Biotechnology Investor Incentive Tax Credit, the investor must be a Qualified Opportunity Fund (as defined in § 1400Z-2 of the Internal Revenue Code) and the Qualified Maryland Biotechnology or Qualified Maryland Technology Company which is receiving the investment must be located in an Opportunity Zone.

The additional requirements for Level 1 and Level 2 Enhancements are listed below: Level 1: Opportunity Zone…

Topic areas: Public Policy and Governance, Housing and Community Development, Social Innovation and Community Development.

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

Opportunity Zone Enhancement Credits (State) is administered by Maryland Department of Commerce (MD Commerce), listed via Maryland Department of Commerce.