INCENTIVES TO HELP YOUR BUSINESS GROW
A variety of tax credits and incentives give area businesses the investment they need to build a future in Montgomery County. Whether you're a business owner or investor, we are the partners who can connect you to the best financial options available.
Tax Credits for Businesses
Montgomery County businesses have access to a variety of tax credits and exemptions—from Arts & Entertainment to Historical Preservation—that are designed to encourage investment in targeted geographic areas or industries and support business growth in the County.
Development Impact Tax Exemption is for life sciences companies constructing new facilities are exempt from the County’s development tax; this exemption can be worth millions in savings, depending on square footage.
Systems Development Fee Exemption allows the local water authority to waive the fee imposed on the sanitary/water fixtures in a new biotechnology or manufacturing project for up to $50,000/year per project.
Fuel Energy Tax Exemption for Onsite Clean Energy makes electricity generated through onsite solar installation exempt from the County’s Fuel Energy Tax, which applies to fossil-fuel generated electricity and other building fuels.
Businesses that create a minimum number of new full-time positions may be entitled to Job Creation Tax Credits of up to $3,000 or $5,000 per job in a revitalization area.
Cybersecurity Investment Incentive Tax Credit (CIITC) is a refundable income tax credit to Qualified Investors who invest in Qualified Maryland Cybersecurity Companies (QMCCs). Qualified Investors receive a credit equal to 33% of an eligible investment in a QMCC.
Buy Maryland Cybersecurity Tax Credit (BMC) allows a qualified Maryland Company that purchases cybersecurity tech or services from a Qualified Maryland Cybersecurity Seller to claim up to $50,000 in tax credits in a single tax year.
Tax Credits for Investors
Maryland has announced new Opportunity Zones, with 14 census tract areas identified in Montgomery County including parts of Silver Spring, Wheaton, Gaithersburg and White Oak. The Opportunity Zones allow investors to receive federal tax incentives to invest in and help redevelop underserved areas. The MD Department of Housing and Community Development administer the U.S. Treasury Department program locally, with support from the MD Department of Commerce.
Maryland Biotechnology Investment Incentive Tax Credit (BIITC) provides an income tax credit equal to 50% of an eligible investment in a Qualified Maryland Biotechnology Company (QMBC) up to $250,000 for each QMBC per fiscal year.
The Cybersecurity Investment Incentive Tax Credit Supplement-Amendment is a new bill passed through the Montgomery County Council to assist cyber company investors. It will:
match the tax credit with the state version (MD Cybersecurity Investment Incentive Tax Credit) so investors will get a supplemental tax credit for investing in cyber companies in MoCo.
ensure that the recipient of the tax credit in County-based cybersecurity companies is transferred from the company to the "qualified investor." Qualified investors must invest in cybersecurity firms located in the County in order to qualify for the local matching grant, but the investor does not need to be located in the County.
What works best is to have a partnership between the public and private sector, with the public sector providing some of the resources and connections needed, while seeking insight from the private sector and relying on them to execute the plan.
NADIA KHAN, J.D.
Business Development Specialist