Source: https://vandeverglaw.com/blog/2018/9/21/process-for-cybersecurity-related-buy-maryland-tax-credit-bmc-revealed
Timestamp: 2019-04-20 06:37:09+00:00

Document:
A qualified buyer ("Qualified Maryland Company") purchasing cybersecurity technology and/or services from one or more qualified sellers ("Qualified Maryland Cybersecurity Sellers") may claim up to $50,000 in tax credits annually. The aggregate credits claimed for cybersecurity technology or cybersecurity service purchased from a single qualified seller may not exceed $200,000 per annum. To implement the new law, MDOC recently published an online description of the credit and forms that it developed for applicants, one for buyers and one for sellers.
Under the new law, a “Qualified buyer” is “any entity that has fewer than 50 employees in the State and that is required to file an income tax return in the State”: in other words, a small business operating in Maryland. A “Qualified seller” means a cybersecurity business that: (1) has its headquarters and base of operations in the State; (2) has less than $5,000,000 in annual revenue; and (3) owns or has properly licensed any proprietary cybersecurity technology; or provides a cybersecurity service. A qualified buyer may claim a credit against the State income tax in an amount equal to 50% of the cost incurred during the taxable year to purchase cybersecurity technology or a cybersecurity service from one or more qualified sellers.” Sellers are qualified by MDOC in consultation with a special panel of cybersecurity experts convened under the guidance of the Maryland Technology Development Corporation (TEDCO).
According to MDOC’s website, "[t]he Buy Maryland Cybersecurity Tax Credit is designed to promote the cybersecurity industry in Maryland by helping small businesses purchase cybersecurity technologies and services from Maryland cybersecurity companies to protect business information."
If you need assistance with evaluating this tax credit opportunity, or completing your application as a cybersecurity buyer (QMC) or seller (QMCS), call me on (410) 622-3878 or email chris@vandeverglaw.com.
 S.B. 228, 2018 Sess. (Md. 2018).
 Md. TAX-GENERAL Code Ann. § 10-733.1(b)(2).
 Md. TAX-GENERAL Code Ann. § 10-733.1(b)(3).
 Md. TAX-GENERAL Code Ann. § 10-733.1(a)(7).
 Md. TAX-GENERAL Code Ann. § 10-733.1(a)(8).
 Md. TAX-GENERAL Code Ann. § 10-733.1(b)(1).
 Md. TAX-GENERAL Code Ann. § 10-733.1(c).
 Md. TAX-GENERAL Code Ann. § 10-733.1(a)(2).
 Md. TAX-GENERAL Code Ann. § 10-733.1(a)(4).
 Md. TAX-GENERAL Code Ann. § 10-733.1(a)(3).

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