2023 Maryland Statutes › Economic Development › Division I - Secretary of Commerce and Department of Commerce › Title 6 - Economic Development Tax Incentives › Subtitle 4 - One Maryland Economic Development Tax Credit › Section 6-401 - Definitions

(a)    In this subtitle the following words have the meanings indicated.
(b)    “Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle.
(c)    “Eligible economic development project” means an economic development project that:
(1)    establishes or expands a business facility within a Tier I county; and
(2)    is approved for a project tax credit in accordance with this subtitle.
(d)    (1)    “Eligible project cost” means the cost and expense a qualified business entity incurs to acquire, construct, rehabilitate, install, or equip an eligible economic development project.
(2)    “Eligible project cost” includes:
(i)    the cost of:
1.    obligations for labor and payments made to contractors, subcontractors, builders, and suppliers;
2.    acquiring land, rights in land, and costs incidental to acquiring land or rights in land;
3.    contract bonds and insurance needed during the acquisition, construction, or installation of the project;
4.    test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services;
5.    performing duties required by or consequent to the acquisition, construction, and installation of the project;
6.    installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities; and
7.    bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities;
(ii)    the interest cost before and during the acquisition, construction, installation, and equipping of the project, and for up to 2 years after project completion;
(iii)    legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project; and
(iv)    a qualified business entity’s cost to furnish and equip a new location for ordinary business functions, including:
1.    the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment; and
2.    expenditures for moving costs, separation costs, and other costs directly related to moving from outside of the State to a location in a Tier I county.
(e)    “Project tax credit” means a tax credit for eligible project costs allowed under § 6–403 of this subtitle.
(f)    “Qualified business entity” means a person that:
(1)    (i)    conducts or operates a trade or business in the State; or
(ii)    operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and
(2)    is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle.
(g)    (1)    “Qualified position” means a position that:
(i)    is a full–time position and is of indefinite duration;
(ii)    pays at least 120% of the State minimum wage;
(iii)    is in a Tier I county;
(iv)    is newly created because a business facility begins or expands in one location in a Tier I county; and
(v)    is filled.
(2)    “Qualified position” does not include a position that is:
(i)    created when an employment function is shifted from an existing business facility of a business entity in the State to another business facility of the same business entity if the position is not a net new job in the State;
(ii)    created through a change in ownership of a trade or business;
(iii)    created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;
(iv)    created when an employment function is contractually shifted from an existing business entity in the State to another business entity if the position is not a net new job in the State; or
(v)    filled for a period of less than 12 months.
(h)    (1)    “Tier I county” means a county with:
(i)    an average rate of unemployment for the most recent 24–month period for which data are available that exceeds 150% of the average rate of unemployment for the State during that period;
(ii)    an average rate of unemployment for the most recent 24–month period for which data are available that exceeds the average rate of unemployment for the State by at least 2 percentage points; or
(iii)    a median household income for the most recent 24–month period for which data are available that is equal to or less than 75% of the median household income for the State during that period.
(2)    “Tier I county” includes a county that:
(i)    no longer meets any of the criteria stated in paragraph (1) of this subsection; but
(ii)    has met at least one of the criteria at some time during the preceding 24–month period.