Job Creation Tax Credit (JCTC)
Maryland businesses that add new jobs are eligible to receive a $1000 tax credit per job. In Caroline County, a business is eligible for the tax credit if they add at least 25 jobs over a two year period. By default, companies that qualify for the One Maryland Tax Credit typically qualify for the JCTC as well.
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
Any business located in the Federalsburg Enterprise 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.
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 DBED 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
Cellulosic Ethanol Technology R&D Tax Credit
Companies that conduct research within Maryland related cellulosic ethanol technology are eligible for a tax credit. The income tax credit amount is 10% of eligible expenses incurred by an individual or company during the previous tax year. Total credits are limited to $250,000 for all companies that apply. Applications for the tax credit must be submitted to DBED [http://www.choosemaryland.org/businessresources/Pages/CellulosicEthanol.aspx] by September 15th in the year following the tax year in which the expenses were incurred.
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.
International Business Resources
DBED’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
DBED 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 DBED, 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.
Advanced Manufacturing Professionals (AMP) Program
Caroline County businesses, the CCED, and Caroline County Public Schools have partnered to create a program that develops and retains local engineering and skilled technical talent.
Beginning in their junior year of high school, top students who plan to pursue engineering careers or skilled technical careers are selected to participate in the AMP program. First, students attend a symposium that educates them on the current state of U.S. manufacturing, emerging trends, and an overview of career opportunities within the sector. They then visit 3 – 6 local manufacturing facilities for extensive plant tours and meetings with engineering and technical personnel.
Students may then apply for internships with manufacturing companies throughout the County. Juniors and seniors may spend half their school day working in internship positions, and they are also available to work after school and over the summer. The goal is to help these top students maintain connections with local companies throughout their post-secondary education and ultimately find full-time employment within the County.
Free Marketing Services for Tourism-Related Businesses
Any tourism-related business in Caroline County is eligible to receive free marketing services including logo design, flyer and brochure design, and assistance with developing and distributing press releases. These services help small businesses achieve top-notch branding while saving them thousands of dollars per year.