Financial & Tax Incentives

Targeted tax incentives and financing programs that help businesses to create, expand, and relocate to our community, support our goal of stimulating economic growth, and creating employment opportunities for our residents.

Tax Incentives

Montgomery County tax incentives

• New Jobs Tax Credit: Combined state and county tax credits to businesses that hire 25 or more permanent, full-time employees and occupy 5,000 square foot of new and previously unoccupied space
• Enhanced New Jobs Tax Credit: Combined state and county tax credits to businesses that create at least 500 or 1,250 new permanent and full-time positions, increase its space by at least 250,000 square feet, and pay all these employees at least 150% of the federal minimum wage
• Brownfield Property Tax Credit: County real property tax credit on the incremental increase in property value of a Qualified Brownfield Site after completion of a voluntary cleanup or corrective action plan.
• Green Building Tax Credit: County real property tax credit on the total property value of a building or reconstruction project that achieves a LEED certification.
• Arts & Entertainment Districts: Montgomery County’s three state-designated Arts & Entertainment Districts lessen the financial burdens for local artists and the property owners who support them.

State of Maryland tax incentives

• Job Creation Tax Credit: $1,000 tax credit to businesses that create new jobs to encourage businesses expanding or relocating to Maryland
• Job Creation and Recovery Tax Credit: Tax credits to businesses that hire Maryland residents who have been unemployed for the previous 12 months
• Enterprise Zone Tax Credit: Income tax and real property tax credits to businesses locating in a Maryland Enterprise Zone in return for job creation and investments
• Research and Development Tax Credit: Tax credits to businesses with qualified research and development expenses in Maryland if eligible and certified by the Maryland Department of Business and Economic Development
• Biotechnology Investment Tax Credit: Income tax credits to individuals or any entities who invest at least $25,000 in a Qualified Maryland Biotechnology Company
• Cybersecurity Investment Incentive Tax Credit: Refundable income tax credit for cybersecurity companies that secure investment from investors
• Brownfields Revitalization Incentive Program: Financial incentives in the form of grants or low interest loans for the redevelopment of certain properties that are contaminated by hazardous materials or oil
• Cellulosic Ethanol Technology R&D Tax Credit: State income tax credit for businesses that incur qualified cellulosic ethanol technology research and development expenses in Maryland
• Community Investment Tax Credit: Allocations of State tax credits to 501(c)(3) nonprofit organizations for use as incentives to attract contributions from individuals and businesses to benefit local projects and services
• Maryland Heritage Structure Rehabilitation Tax Credit: Maryland income tax credits equal to 20% of the qualified capital costs expended in the rehabilitation of a “certified heritage structure

Financing Programs

Montgomery County financing programs

• Economic Development Fund Grant/Loan Programs: Private employers who retain and create jobs in Montgomery County, especially high technology and manufacturing companies
• Small Business Revolving Loan Program: Small businesses with annual revenues of less than $5 million and fewer than 75 employees
• Biotechnology Tax Credit Supplement: Modeled after and working in collaboration with Maryland’s Biotech Investment Tax Credit Program, the county’s program allows investors receiving tax credits through the state’s program to receive a supplemental payment from the county based on their investments in county biotechnology companies
• Cybersecurity Tax Credit Supplement Program: The county’s latest local incentive program aimed at spurring job and business growth in the cybersecurity sector
• Green Investor Incentive Program: This program offers a supplement to investors of green businesses in Montgomery County.
• MOVE Program: The MOVE program is designed to attract new businesses to Montgomery County. Offers lease rebates to companies moving into the county for the first time.
• Equity Investment Program: This program, a sub-program under the Economic Development Fund, allows the county to make an equity investment in a company located in or relocated to Montgomery County.
• Life Sciences Impact Grants: The Life Sciences Impact Grant Program was created in 2014 to provide financial assistance to life science employers who retain jobs and to stimulate the organic growth of life sciences in Montgomery County.

State of Maryland financing programs

• Maryland Economic Development Assistance Authority and Fund: Assistance to the business community and political jurisdictions with five financing capabilities
• Maryland Economic Adjustment Fund: Financial assistance to business entities in the state with modernization of manufacturing operations, development of commercial applications for technology, and exploring and entering new markets
• Maryland Small Business Development Financing Authority: Financing for small businesses that are not able to qualify for financing from private lending institutions or owned by socially and economically disadvantaged persons
• Maryland Industrial Development Financing Authority: Private activity revenue bonds and credit insurance in the form of a deficiency guaranty to reduce lender’s risk
• Maryland Venture Fund: Direct investments in technology and life science companies and indirect investments in venture capital funds
• Community Development Block Grant Program: Funds dispersed to a local jurisdiction in the form of a conditional grant and then used for public improvements or loaned to a business
• Maryland Capital Access Program: Credit enhancement program for small businesses that enables private lenders to establish a loan loss reserve fund from fees paid by lenders, borrowers, and the State of Maryland