Three High-Tech Tax Credits Expanded in Maryland Gov’s Budget

Gov. Martin O’Malley’s FY15 budget includes increased funding for the state’s biotech tax credit, cyber tax credit and R&D tax credit, and provides level funds to continue longstanding tech-based and workforce initiatives.

The budget recommendations submitted last week to the legislature would provide the following increases for tax incentives:

• $2 million increase for the Biotechnology Incentive Tax Credit, bringing the total funds to $12 million to assist life sciences companies in raising funds. The program provides refundable income tax credits equal to 50 percent of an eligible investment.
• $1 million increase for the newer Cybersecurity Investment Incentive Tax for a total $4 million. This incentive provides a refundable tax credit equal to 33 percent of an eligible investment up to $250,000.
• $1 million increase for the state’s R&D tax credit for a total $9 million.

Funding for the Maryland Technology Development Corporation (TEDCO) would be held steady at $18.6 million with $10.4 million designated for the Maryland Stem Cell Research Fund, the same as last year. Another $5 million would continue commercialization activity at the state’s universities through the Maryland Innovation Initiative. The Maryland Industrial Partnerships Program is slated to receive $400,000 for matching funds to speed development of products developed by faculty. Second-year funding of $4.5 million also is requested for the EARN program established last year to identify and fill gaps in the high-tech workforce.

View the budget recommendations at: http://dbm.maryland.gov/agencies/operbudget/Documents/2015/BudgetHighlightsFY2015.pdf.