Caroline County Economic Development

Incentives & Tax Credits

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The most commonly available local and state incentive programs for business growth and attraction in Caroline County are listed below. For a full list of State incentives, please visit the Maryland Department of Commerce.

We can also connect you with a variety of resources to help you launch and grow your business.

Incentives for job creation

Incentives for capital investment

Federalsburg Enterprise Zone

  • jobs
  • capital

It is very easy to apply for this incentive; we encourage all Federalsburg-based businesses to apply if eligible!

The Federalsburg Enterprise Zone encompasses all three Federalsburg industrial parks, most downtown and commercial areas, and some industrial properties located just outside town limits. If you would like to verify that your property is located within the Zone, please contact Caroline County Economic Development at 410-479-4188. 

Any business located within the Zone is eligible for two types of tax credits:

  1. General Maryland Income Tax Credit: A one-time $1,000 tax credit for each qualified new employee filling a newly created position
  2. Real Property Tax Credit: A ten-year tax credit against the county and municipal property taxes on the incremental increased assessed value of a property resulting from improvements or expansion. A minimum investment of $100,000 is required. The tax credit is 80% of the increased value for the first five years, which then decreases 10% annually (70%, 60%, 50%, 40%, and 30%) for the subsequent five years.

North County Enterprise Zone

  • jobs
  • capital

It is very easy to apply for this incentive! We encourage all eligible businesses to do so.

The North County Enterprise Zone encompasses most commercial and industrial property in the towns of Ridgely, Greensboro, and Goldsboro. If you would like to verify that your property is located within the Zone, please contact Caroline County Economic Development at 410-479-4188. 

Any business located within the Zone is eligible for two types of tax credits:

  1. General Maryland Income Tax Credit: A one-time $1,000 tax credit for each qualified new employee filling a newly created position, minimum 5 newly created positions.
  2. Real Property Tax Credit: A ten-year tax credit against the county and municipal property taxes on the incremental increased assessed value of a property resulting from improvements or expansion. A minimum investment of $100,000 is required. The tax credit is 80% of the increased value for the first five years, which then decreases 10% annually (70%, 60%, 50%, 40%, and 30%) for the subsequent five years.

Caroline Manufacturing Tax Credit

  • capital

Manufacturing companies that invest at least $50,000 in an expansion project and add at least 15 full time jobs related to the expansion are eligible for a real property tax credit. The amount of the credit is equal to 100% of the real property tax attributable to the increased assessable value of facility expansion or new construction. The credit may be claimed for a period of five years.

Job Creation Tax Credit (JCTC)

  • jobs

This is a state of Maryland administered income tax credit that provides credits based on the number of net new jobs created. The qualifications and application process are covered in detail at Job Creation Tax Credit | Maryland Department of Commerce.

Certain Caroline County businesses that add at least 10 new jobs are eligible to receive up to a $5,000 tax credit per job created. This is a credit on the business income tax.

We urge you to reach out to the Maryland Department of Commerce to see if you qualify.

More Jobs for Marylanders – Manufacturing Tax Credit

  • jobs

This state of Maryland run incentive provides a 10-year state income tax credit for manufacturers that create at least 10 new full-time jobs. The credit is equal to 4.75% of the wages per eligible new position. 

Businesses planning to claim the More Jobs for Marylanders tax credit(s) must notify Maryland Department of Commerce of their intent prior to hiring new employees and submit an application by the due date.

The reps from the Maryland Department of Commerce are ready to help you learn more about this program.

One Maryland Tax Credit

  • jobs
  • capital

A state of Maryland tax credit for capital expenditures and job creation. The amount of income tax credit that a business will qualify for depends on the amount of capital investment it makes in the project and the number of new qualified jobs it creates in a 24 month period.

 This can be a very beneficial program – be sure to visit the Maryland Department of Commerce to see full details and apply.

Opportunity Zones

  • capital

An Opportunity Zone is an area in a community where new investments, under certain conditions, may be eligible for preferential tax treatment. The Opportunity Zone program provides federal tax incentives for investment in areas of Denton and Federalsburg through year 2027. Fund investors in projects located in Opportunity Zone​s will be able to reap the benefits of capital gains to help stimulate economic growth in our communities. The Maryland Department of Housing and Community Development administers the Opportunity Zone program in Maryland.