§ 6-401
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/md/economic-development/6-401A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§6–401.
(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.
(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:
(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.
(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.
(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.