The most commonly used local and state incentive programs for Caroline County are listed below. For a full list of State incentives, please visit the Maryland Department of Commerce.
Caroline Manufacturing Tax Credit
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.
Federalsburg Manufacturing Tax Credit
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 their choice of: a real property tax credit OR a business personal property tax credit. If the real property tax credit is chosen, the credit is equal to 100% of the real property tax attributable to the increased assessable value of facility expansion or new construction. If the business personal property tax credit is chosen, the credit is equal to 100% of the business personal property tax assessment. The credit may be claimed for a period of five years.
Federalsburg Enterprise Zone
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 the Federalsburg Town Office at 410-754-8173. It is very easy to apply for this incentive; we encourage all Federalsburg-based businesses to apply if eligible!
Any business located within the Zone is eligible for two types of tax credits:
- General Maryland Income Tax Credit: A one-time $1,000 tax credit for each qualified new employee filling a newly created position
- 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.
Job Creation Tax Credit (JCTC)
Maryland businesses that add new jobs are eligible to receive a $1,000 tax credit per job or $1,500 in a “revitalization area.”
Note: Beginning January 1, 2018, eligible businesses may receive a credit of $3,000 per job ($5,000 per job in a revitalization area). The Maryland Department of Commerce can certify up to $4 million in credits each year; businesses will be certified on a first-come, first-served basis.
As of January 1, 2018, Caroline County businesses must add at least 10 jobs to be eligible for this incentive (60 jobs are required prior to this date). Qualifying positions must be full-time and paid at least 120% of federal minimum wage.
More Jobs for Marylanders – Manufacturing Tax Credit
This 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 5.75% of the wages per eligible new position. This incentive also provides a $1,000 tax credit for businesses that employ eligible apprentices. 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.
Hire Our Veterans Tax Credit
Maryland small businesses may be eligible for a tax credit equal to 30% of the first $6,000 of wages paid to a qualified veteran employee during the first year of employment (i.e. a maximum of $1,800 credit per qualified veteran employee).
Eligible businesses must employ 50 or fewer full-time employees. Qualified veteran employees must have been honorably discharged and have served on active duty for more than 180 days. Also, the veteran must be a member of a family that received SNAP benefits, OR has a service-related disability, OR has been unemployed for at least four weeks in the year ending in the hiring date. Please visit the Maryland Department of Commerce to see full details and apply.
Maryland Research & Development Tax Credits
Maryland offers two R&D tax credits to businesses. The Basic R&D tax credit allows businesses to claim a credit equal to 3% of eligible R&D expenses that do not exceed the company’s average R&D expenses over the past four years. The Growth R&D Tax Credit allows businesses to claim a credit equal to 10% of the R&D expenses that exceed the company’s average R&D expenses over the past four years. Businesses must apply for the tax credit to Maryland Department of Commerce by September 15th in the year following the tax year in which the expenses were incurred.
Employer Security Clearance Costs (ESCC) Tax Credit
Maryland offers three tax credit incentives to businesses that incur security clearance costs and/or conduct security-related business within the state:
- Security Clearance Administrative Expenses Tax Credit: up to $250,000 per year for qualified security clearance administrative expenses
- Sensitive Compartmented Information Facility Costs Tax Credit: the lesser of 50% of construction or renovation costs or $200,000 for a single SCIF; the amount of costs up to $500,000 for multiple SCIFs
- First Year Leasing Costs Tax Credit for Qualified Small Businesses: up to $200,000 for rental payments incurred in the first year of a lease agreement for spaces to perform security-based contracting work
Maryland Wineries & Vineyards Tax Credit
This incentive provides an income tax credit for qualified capital expenses incurred to start a new winery or vineyard in Maryland, or to improve and/or expand an existing Maryland winery or vineyard. The credit is equal to 25% of the capital expenses incurred. Total credits may not exceed $500,000 for a single tax year. If total tax credit applications exceed $500,000, the credit will be prorated among qualified applicants.
Caroline Small Business Loan Program
Caroline County offers a Small Business Loan Fund that helps small businesses start up or expand. The funds are usually used for working capital that typically cannot be financed through traditional lenders. The maximum loan amount is $50,000, though most loans are for less than $10,000. Loan applicants must submit a completed application, a written business plan, and three character references.
Partnership for Workforce Quality (PWQ)
PWQ provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. Grants are used to increase the skills of existing workers for new technologies and production processes, improve employee productivity and increase employment stability. Matching grant funds are used to reimburse up to 50% of the costs of qualified projects. Applicants must have a minimum of 10 full-time employees.
International Business Resources
Maryland Department of Commerce’s ExportMD program offers reimbursement of 50% of expenses incurred by Maryland companies for international marketing initiatives. The maximum reimbursement is $5,000. This grant may be used to reimburse expenses such as international travel, trade shows, translation services, etc.
This grant is available to small businesses as defined by the U.S. Small Business Administration that have been in business for at least one year and are in good standing with the State Department of Assessments and Taxation. Companies are eligible to receive and ExportMD grant every two years. Applications are accepted bi-monthly throughout the year, and selections are made by a third party review committee on a competitive basis.
Application forms are available through CCED. Please contact us for help with your application.
International Market Research
Maryland Department of Commerce has eleven international offices located in countries throughout the world. Maryland companies may submit a request for up to 20 hours of free market research per year. Companies may also apply for up to 40 additional hours of free assistance through the ExportMD program. Scopes of work for market research projects would be determined with Commerce, but examples of the types of research that may be requested include:
- Competitive analysis and a list of competitors
- Demographic information and general market indicators
- Distribution channels and a list of possible distribution partners
- Background and reference checks for direct hires and/or companies
If you are interested in pursuing a market research project, please contact CCED.