Businesses in Maryland will receive a boost in tax breaks and incentives as part of a federal business tax credit program that has a long history in the state.
The Baltimore Business Association announced Monday that the Maryland Business Development Corporation will begin a process of collecting tax credits from Maryland businesses for projects such as solar panels and green roofs.
The credit program will be available to small businesses that are at least $100,000 in size and employ up to 200 people.
“I think the benefits are tremendous,” said Mike O’Connor, president of the Maryland Chamber of Commerce.
“I think there’s tremendous value in this credit for our industry.”
The Maryland Business Alliance is the state’s largest business lobby.
O’ Connor said the credit program was part of the state budget in 2015 to attract businesses to the state and the region.
“The credit is really important for small businesses to attract more jobs and the investments that they need to grow and create jobs,” he said.
“The credits will go a long way toward helping us grow, and we’re thrilled to help with that.”
The credits are designed to help businesses invest in solar and other renewable energy projects.
The credits are not meant to be a tax break, but the credits will help small businesses like O’Leary, who have to pay an average of $6,000 a year in taxes and fees.
“We’re just happy that we have a credit for small business,” O’Neill said.
“You have to understand that the credit is designed to go to businesses in need,” said Laura T. Oates, senior vice president of government relations for the Maryland Small Business Association.
“Small business are really at the heart of the economy in Maryland.
They’re one of the first and best places to find jobs.”
The credit program has been in place since the 1960s and will be eligible for an extension in the fiscal year that begins Oct. 1.
Orenson said the state has a $30 million incentive package available for Maryland businesses that expand solar projects.
The Maryland Department of Commerce and Economic Development announced Monday the Maryland Industrial Development Authority will begin collecting a $300,000 federal credit.
The money will help support job creation and create high-tech manufacturing jobs in Maryland’s manufacturing industries.
Maryland’s industrial development authority is one of several agencies in the region that will help business in the Maryland economy.
The credit will not be available for small companies in the city of Annapolis, where the Maryland Export-Import Bank will provide an $80,000 credit for businesses.
Marylands Export-Imports Bank, which helps businesses invest and build their business in Maryland, said it is the only state agency that will be offering a tax credit.
“This credit will support the construction of new businesses and create good-paying jobs for local employees, as well as the growth of the region’s economy,” said Teresa R. McGovern, the bank’s executive director.
“This credit is a critical part of helping Maryland’s economy continue to grow.”
The bank has been able to offer credits for decades because of the strong economy in the capital.
In the past, it also helped with job training programs and for companies to sell to customers.
McGovern said the bank is working with local agencies and other entities to help create a business environment for businesses in Maryland that support local manufacturing.