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Maryland Code, Economic Development § 6-401

Current as of December 31, 2021 | Updated by FindLaw Staff

(a) In this subtitle the following words have the meanings indicated.

(b) “Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle.

(c) “Eligible economic development project” means an economic development project that:

(1) establishes or expands a business facility within a Tier I county;  and

(2) is approved for a project tax credit in accordance with this subtitle.

(d)(1) “Eligible project cost” means the cost and expense a qualified business entity incurs to acquire, construct, rehabilitate, install, or equip an eligible economic development project.

(2) “Eligible project cost” includes:

(i) the cost of:

1. obligations for labor and payments made to contractors, subcontractors, builders, and suppliers;

2. acquiring land, rights in land, and costs incidental to acquiring land or rights in land;

3. contract bonds and insurance needed during the acquisition, construction, or installation of the project;

4. test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services;

5. performing duties required by or consequent to the acquisition, construction, and installation of the project;

6. installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities;  and

7. bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities;

(ii) the interest cost before and during the acquisition, construction, installation, and equipping of the project, and for up to 2 years after project completion;

(iii) legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project;  and

(iv) a qualified business entity's cost to furnish and equip a new location for ordinary business functions, including:

1. the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment;  and

2. expenditures for moving costs, separation costs, and other costs directly related to moving from outside of the State to a location in a Tier I county.

(e) “Project tax credit” means a tax credit for eligible project costs allowed under § 6-403 of this subtitle.

(f) “Qualified business entity” means a person that:

(1)(i) conducts or operates a trade or business in the State;  or

(ii) operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code;  and

(2) is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle.

(g)(1) “Qualified position” means a position that:

(i) is a full-time position and is of indefinite duration;

(ii) pays at least 120% of the State minimum wage;

(iii) is in a Tier I county;

(iv) is newly created because a business facility begins or expands in one location in a Tier I county;  and

(v) is filled.

(2) “Qualified position” does not include a position that is:

(i) created when an employment function is shifted from an existing business facility of a business entity in the State to another business facility of the same business entity if the position is not a net new job in the State;

(ii) created through a change in ownership of a trade or business;

(iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;

(iv) created when an employment function is contractually shifted from an existing business entity in the State to another business entity if the position is not a net new job in the State;  or

(v) filled for a period of less than 12 months.

(h)(1) “Tier I county” means a county with:

(i) an average rate of unemployment for the most recent 24-month period for which data are available that exceeds 150% of the average rate of unemployment for the State during that period;

(ii) an average rate of unemployment for the most recent 24-month period for which data are available that exceeds the average rate of unemployment for the State by at least 2 percentage points;  or

(iii) a median household income for the most recent 24-month period for which data are available that is equal to or less than 75% of the median household income for the State during that period.

(2) “Tier I county” includes a county that:

(i) no longer meets any of the criteria stated in paragraph (1) of this subsection;  but

(ii) has met at least one of the criteria at some time during the preceding 24-month period.

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Cite this article: FindLaw.com - Maryland Code, Economic Development § 6-401 - last updated December 31, 2021 | https://codes.findlaw.com/md/economic-development/md-code-econ-dev-sect-6-401/

Read this complete Maryland Code, Economic Development § 6-401 on Westlaw

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