Current as of December 31, 2021 | Updated by FindLaw Staff
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(a) A qualified business entity operating an aerospace, electronics, or defense contract tax credit project is eligible for the income tax credit described in § 6-703 of this subtitle.
(b) The Department shall certify a business entity as a qualified business entity within 60 days of receiving an application that evidences that the applicant has satisfied the requirements of this section.
(c)(1) The Department may certify a project as an aerospace, electronics, or defense contract tax credit project if the business entity that will operate the project:
(i) creates or retains at least 10,000 qualified positions; and
(ii) submits a budget evidencing that the business entity will expend at least $25,000,000 in qualifying expenditures, as determined by the Department, during the credit year.
(2) The qualified positions and qualified expenditures required under paragraph (1) of this subsection must result from an aerospace, electronics, or defense contract project located in the State.
(d)(1) To be eligible for the tax credit under this subtitle, the business entity that operates the aerospace, electronics, or defense contract tax credit project shall submit to the Department an application, the form and content of which shall be determined by the Department.
(2) The application required under paragraph (1) of this subsection shall contain:
(i) a new contract executed by the business entity for the provision of goods or services in connection with an aerospace, electronics, or defense contract;
(ii) the number of full-time positions with an annual salary of at least $85,000, including benefits, to be retained or hired as part of the aerospace, electronics, or defense contract; and
(iii) a budget for the project that includes the amount of qualified expenditures that the applicant pledges to expend in connection with the aerospace, electronics, or defense contract.
(e) The Department may require that any information provided under subsection (d) of this section be verified by an independent certified public accountant that the business entity and the Department select.
(f) A qualified business entity may receive up to three designations for aerospace, electronics, or defense contract tax credit projects in a fiscal year.
(g) The Department may not approve designations for aerospace, electronics, or defense contract tax credit projects that would result in total aggregate tax credits exceeding $7,500,000 in a taxable year.
Cite this article: FindLaw.com - Maryland Code, Economic Development § 6-702 - last updated December 31, 2021 | https://codes.findlaw.com/md/economic-development/md-code-econ-dev-sect-6-702.html
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