<section article="gec" article_name="Economic Development" number="6-101" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Central services” means the performance of central management or administrative functions.</text> </level> <level label="2"> <text>“Central services” includes:</text> <level label="i"> <text>general management;</text> </level> <level label="ii"> <text>accounting;</text> </level> <level label="iii"> <text>computer tabulating;</text> </level> <level label="iv"> <text>data processing;</text> </level> <level label="v"> <text>purchasing;</text> </level> <level label="vi"> <text>transportation or shipping;</text> </level> <level label="vii"> <text>advertising;</text> </level> <level label="viii"> <text>legal services;</text> </level> <level label="ix"> <text>financial services; and</text> </level> <level label="x"> <text>research and development.</text> </level> </level> </level> <level label="c"> <text>“Company headquarters” means a facility where the majority of a business entity’s financial, personnel, legal, and planning functions are handled on a regional or national basis.</text> </level> <level label="d"> <text>“Full-time position” means a position requiring an employee to work at least 840 hours during at least 24 weeks in a 6-month period.</text> </level> <level label="e"> <text>“Qualified employee” means an employee filling a qualified position.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-201" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="2" subtitle_name="Film Production Activity Tax Exemption"> <text>The General Assembly intends that the tax exemption under § 11-227 of the Tax - General Article:</text> <level label="1"> <text>increase the film production activity in the State;</text> </level> <level label="2"> <text>bring economic benefits to the State; and</text> </level> <level label="3"> <text>generate increased employment opportunities in the State.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-202" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="2" subtitle_name="Film Production Activity Tax Exemption"> <text>To receive the tax exemption provided under § 11-227 of the Tax - General Article for a film production activity, a film producer or a film production company shall first have a certification of eligibility for the tax exemption from the Department.</text> </section> <section article="gec" article_name="Economic Development" number="6-203" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="2" subtitle_name="Film Production Activity Tax Exemption"> <text>The Department and the Comptroller jointly shall adopt regulations defining a film production activity, tangible personal property, and taxable services used directly in connection with a film production activity under § 11-227 of the Tax - General Article.</text> </section> <section article="gec" article_name="Economic Development" number="6-301" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Credit year” means the taxable year in which a qualified business entity claims the credit allowed in accordance with § 6–304(a) of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>“Qualified business entity” means a person conducting or operating a trade or business in the State that is certified in accordance with § 6–303 of this subtitle as qualifying for the tax credit under this subtitle.</text> </level> <level label="2"> <text>For a person engaged in a business activity described in § 6–303(b)(1)(ii)13 of this subtitle, “qualified business entity”:</text> <level label="i"> <text>includes a person owning or operating the multi–use facility in which the entertainment, recreation, cultural, or tourism–related activities are operated; and</text> </level> <level label="ii"> <text>does not include any separate entity that leases retail space at the facility.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>“Qualified position” means:</text> <level label="i"> <text>if the position is filled before October 1, 2021, a position that:</text> <level label="1"> <text>is full–time and of indefinite duration;</text> </level> <level label="2"> <text>pays at least 120% of the State minimum wage;</text> </level> <level label="3"> <text>is located in the State;</text> </level> <level label="4"> <text>is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and</text> </level> <level label="5"> <text>is filled; and</text> </level> </level> <level label="ii"> <text>if the position is filled on or after October 1, 2021, a position that:</text> <level label="1"> <text>is full–time and of indefinite duration;</text> </level> <level label="2"> <text>pays at least:</text> </level> <level label="A"> <text>for an employee classification for which there is a prevailing wage rate, as defined under § 17–201 of the State Finance and Procurement Article, the prevailing wage; or</text> </level> <level label="B"> <text>for any other employee classification, 150% of the State minimum wage;</text> </level> <level label="3"> <text>is located in the State;</text> </level> <level label="4"> <text>provides career advancement training;</text> </level> <level label="5"> <text>affords the employee the right to collectively bargain for wages and benefits;</text> </level> <level label="6"> <text>provides paid leave;</text> </level> <level label="7"> <text>is considered covered employment for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article;</text> </level> <level label="8"> <text>entitles the employee to workers’ compensation benefits in accordance with Title 9 of the Labor and Employment Article;</text> </level> <level label="9"> <text>offers employer–provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee’s net monthly earnings;</text> </level> <level label="10"> <text>offers retirement benefits;</text> </level> <level label="11"> <text>is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and</text> </level> <level label="12"> <text>is filled.</text> </level> </level> </level> <level label="2"> <text>“Qualified position” does not include a position that is:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>created through a change in ownership of a trade or business;</text> </level> <level label="iii"> <text>created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;</text> </level> <level label="iv"> <text>created when an employment function is contractually shifted from an existing business entity to another business entity in the State if the position is not a net new job in the State; or</text> </level> <level label="v"> <text>filled for a period of less than 12 months.</text> </level> </level> <level label="3"> <text>For a person engaged in a business activity described in § 6–303(b)(1)(ii)13 of this subtitle, “qualified position” does not include any position other than a position engaged in:</text> <level label="i"> <text>the operation of entertainment, recreation, cultural, or tourism–related activities within the multi–use facility; or</text> </level> <level label="ii"> <text>management, marketing, building maintenance, hotel services, or security for the multi–use facility.</text> </level> </level> </level> <level label="e"> <text>“Qualified veteran employee” means an individual who:</text> <level label="1"> <text>is a veteran; and</text> </level> <level label="2"> <text>is a qualified veteran as defined under § 51(d)(3)(A) of the Internal Revenue Code for purposes of the federal Work Opportunity Tax Credit.</text> </level> </level> <level label="f"> <text>“Revitalization area” means:</text> <level label="1"> <text>an enterprise zone designated by the Secretary under § 5–704 of this article;</text> </level> <level label="2"> <text>an enterprise zone designated by the United States government under 42 U.S.C. §§ 11501 through 11505;</text> </level> <level label="3"> <text>an empowerment zone or enterprise community designated by the United States government under 26 U.S.C. §§ 1391 through 1397F;</text> </level> <level label="4"> <text>a sustainable community, as defined in § 6–301 of the Housing and Community Development Article; or</text> </level> <level label="5"> <text>a Tier I county.</text> </level> </level> <level label="g"> <text>“Small business” means an individual, a partnership, a limited partnership, a limited liability partnership, a limited liability company, or a corporation that employs 50 or fewer total full–time employees.</text> </level> <level label="h"> <text>“State priority funding area” means:</text> <level label="1"> <text>a municipal corporation;</text> </level> <level label="2"> <text>Baltimore City;</text> </level> <level label="3"> <text>a sustainable community, as defined in § 6–301 of the Housing and Community Development Article;</text> </level> <level label="4"> <text>an enterprise zone designated by the Secretary under § 5–704 of this article;</text> </level> <level label="5"> <text>an enterprise zone designated by the United States government under 42 U.S.C. §§ 11501 through 11505;</text> </level> <level label="6"> <text>those areas of the State located between Interstate Highway 495 and the District of Columbia;</text> </level> <level label="7"> <text>those areas of the State located between Interstate Highway 695 and Baltimore City;</text> </level> <level label="8"> <text>any area in a county designated by the county as a priority funding area under § 5–7B–03(c) of the State Finance and Procurement Article;</text> </level> <level label="9"> <text>that portion of the Port Land Use Development Zone, as defined in § 6–501 of the Transportation Article, that has been designated as an area appropriate for growth in a county comprehensive master plan; and</text> </level> <level label="10"> <text>a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-302" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <text>The General Assembly intends that the purpose of the job creation tax credit authorized under this subtitle is to increase the number of new jobs in the State by encouraging:</text> <level label="1"> <text>the expansion of existing private sector enterprises; and</text> </level> <level label="2"> <text>the establishment or attraction of new private sector enterprises.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-303" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <level label="1"> <text>The Secretary or the Secretary’s designee shall certify a person as a qualified business entity if the person meets the requirements of this section.</text> </level> <level label="2"> <text>A person may not be certified as a qualified business entity under subsection (b)(1) of this section unless the person notifies the Department of its intent to seek certification before hiring any qualified employees to fill the qualified positions necessary to meet the requirements of subsection (b)(1)(i) of this section.</text> </level> </level> <level label="b"> <text>To be eligible for a tax credit under this subtitle:</text> <level label="1"> <text>a person shall establish or expand a business facility in the State that:</text> <level label="i"> <text>during any 24–month period creates at least:</text> <level label="1"> <text>60 qualified positions;</text> </level> <level label="2"> <text>25 qualified positions if the business facility established or expanded is located in a State priority funding area; or</text> </level> <level label="3"> <text>10 qualified positions in a county with:</text> </level> <level label="A"> <text>an annual average employment that is less than 75,000; or</text> </level> <level label="B"> <text>a median household income that is less than two–thirds of the statewide median household income; and</text> </level> </level> <level label="ii"> <text>is primarily engaged in:</text> <level label="1"> <text>manufacturing or mining;</text> </level> <level label="2"> <text>transportation or communications;</text> </level> <level label="3"> <text>agriculture, forestry, or fishing;</text> </level> <level label="4"> <text>research, development, or testing;</text> </level> <level label="5"> <text>biotechnology;</text> </level> <level label="6"> <text>computer programming, information technology, or other computer–related services;</text> </level> <level label="7"> <text>central services for a business entity engaged in financial services, real estate services, or insurance services;</text> </level> <level label="8"> <text>the operation of central administrative offices;</text> </level> <level label="9"> <text>the operation of a company headquarters other than the headquarters of a professional sports organization;</text> </level> <level label="10"> <text>the operation of a public utility;</text> </level> <level label="11"> <text>warehousing;</text> </level> <level label="12"> <text>business services, if the business facility established or expanded is located in a State priority funding area;</text> </level> <level label="13"> <text>entertainment, recreation, cultural, or tourism–related activities in a multi–use facility located within a revitalization area if the facility:</text> </level> <level label="A"> <text>generates a minimum of 1,000 new full–time equivalent filled positions in a 24–month period; and</text> </level> <level label="B"> <text>is not primarily used by a professional sports franchise or for gaming; or</text> </level> <level label="14"> <text>the growth, processing, or dispensing of cannabis in accordance with the laws of the State; or</text> </level> </level> </level> <level label="2"> <text>a small business shall hire at least one qualified veteran employee for a full–time position in the State.</text> </level> </level> <level label="c"> <level label="1"> <text>To be certified as a qualified business entity for a tax credit under subsection (b)(1) of this section, a person shall submit to the Department an application that specifies:</text> <level label="i"> <text>the effective date of the start–up or expansion;</text> </level> <level label="ii"> <text>the number of full–time employees existing before the start–up or expansion and the payroll of the existing employees;</text> </level> <level label="iii"> <text>the number of qualified positions created and qualified employees hired and the payroll of the new qualified employees; and</text> </level> <level label="iv"> <text>any other information that the Department requires by regulation.</text> </level> </level> <level label="2"> <text>To be certified as a qualified business entity for a tax credit under subsection (b)(2) of this section, a small business shall submit to the Department an application that specifies:</text> <level label="i"> <text>the name of the small business;</text> </level> <level label="ii"> <text>information identifying the name and date of hire of the qualified veteran employee;</text> </level> <level label="iii"> <text>proof of the wages paid to the qualified veteran employee; and</text> </level> <level label="iv"> <text>any other information that the Department requires by regulation.</text> </level> </level> </level> <level label="d"> <text>When determining whether a business facility is engaged in a qualifying activity described in subsection (b)(1)(ii) of this section, the Department shall consider the definitions set forth in the North American Industry Classification System.</text> </level> <level label="e"> <text>The Department may require that any information provided under subsection (c) of this section be verified by the Maryland Department of Labor.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-304" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <level label="1"> <text>A qualified business entity may claim a tax credit in the amount determined under this section.</text> </level> <level label="2"> <text>The Department shall certify the amount of the tax credit for which a qualified business entity is eligible under this section.</text> </level> <level label="3"> <text>The qualified business entity shall submit to the appropriate State units, with the tax return on which the credit is claimed, certification from the Department that the business entity has met the requirements of this subtitle and is eligible for the credit in the amount certified by the Department.</text> </level> </level> <level label="b"> <level label="1"> <text>Except as provided in this section, the credit earned under this section by a qualified business entity under § 6–303(b)(1) of this subtitle:</text> <level label="i"> <text>for qualified employees who are not qualified veteran employees working in a facility not located in a revitalization area, is $3,000 multiplied by the number of those qualified employees employed by the qualified business entity during the credit year;</text> </level> <level label="ii"> <text>for qualified employees who are not qualified veteran employees working in a facility located in a revitalization area, is $5,000 multiplied by the number of those qualified employees employed by the qualified business entity during the credit year;</text> </level> <level label="iii"> <text>for qualified employees who are qualified veteran employees working in a facility not located in a revitalization area, is $4,000 multiplied by the number of qualified veteran employees employed by the qualified business entity during the credit year; and</text> </level> <level label="iv"> <text>for qualified employees who are qualified veteran employees working in a facility located in a revitalization area, is $6,000 multiplied by the number of qualified veteran employees employed by the qualified business entity during the credit year.</text> </level> </level> <level label="2"> <level label="i"> <text>Except as provided in this section and subject to subparagraph (ii) of this paragraph, the credit earned under this section by a small business under § 6–303(b)(2) of this subtitle is $2,500 multiplied by the number of qualified veteran employees employed by the small business during the credit year.</text> </level> <level label="ii"> <text>A small business may not claim the credit under this section:</text> <level label="1"> <text>for more than five qualified veteran employees in a credit year;</text> </level> <level label="2"> <text>for a qualified veteran employee who is hired to replace a laid–off employee or an employee who is on strike; or</text> </level> <level label="3"> <text>for a qualified veteran employee who has filled the position for less than 1 year.</text> </level> </level> </level> <level label="3"> <text>The credit earned by a qualified business entity under this subtitle may not exceed $1,000,000 for any credit year.</text> </level> <level label="4"> <text>The total amount of credits certified by the Department for qualified business entities in a taxable year may not exceed $4,000,000.</text> </level> </level> <level label="c"> <level label="1"> <text>The same credit cannot be applied more than once against different taxes by the same taxpayer.</text> </level> <level label="2"> <text>If the credit allowed under this subtitle exceeds the total tax otherwise due from a qualified business entity in a taxable year, the qualified business entity may apply the excess as a credit for succeeding taxable years until the earlier of:</text> <level label="i"> <text>the full amount of the excess is used; or</text> </level> <level label="ii"> <text>the expiration of the 5th taxable year from the credit year.</text> </level> </level> <level label="3"> <text>The credit under this subtitle may not be carried back to a preceding taxable year.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-305" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>The provisions of this section do not apply to a tax credit claimed by a small business under § 6–303(b)(2) of this subtitle.</text> </level> <level label="b"> <text>If, during any of the 3 years after the credit year, the number of qualified positions of the qualified business entity falls more than 5% below the average number of qualified positions that existed during the credit year on which the credit was computed, the credit shall be recaptured as follows:</text> <level label="1"> <text>the credit shall be recomputed and reduced by the percentage reduction of the number of qualified employees;</text> </level> <level label="2"> <text>the recomputed credit shall be subtracted from the amount of credit previously allowed; and</text> </level> <level label="3"> <text>the qualified business entity shall pay the difference as taxes payable to the State for the taxable year in which the number of qualified positions falls more than 5% below the average number of qualified positions during the credit year.</text> </level> </level> <level label="c"> <text>If, during any of the 3 years after the credit year, the average number of qualified positions falls below the applicable threshold number of positions required under § 6–303(b)(1) of this subtitle, all credits earned shall be recaptured.</text> </level> <level label="d"> <text>During the 3 taxable years after the credit year, a qualified business entity shall provide any information required by the Department in regulation to verify that the qualified business entity is not subject to subsection (b) or (c) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-306" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>The Comptroller or other appropriate unit shall share with the Department any information received from a qualified business entity about eligibility for a credit allowed under this subtitle.</text> </level> <level label="b"> <text>Information that is received under subsection (a) of this section is subject to the confidentiality requirements established by statute or regulation that apply to the Comptroller or unit that receives the information.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-307" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on the job creation tax credits authorized under this subtitle.</text> </level> <level label="b"> <text>In accordance with § 2–110 of the Insurance Article, the Maryland Insurance Commissioner shall submit a report on:</text> <level label="1"> <text>each insurer claiming the credit against the insurance premium tax under § 6–114 of the Insurance Article;</text> </level> <level label="2"> <text>the total amount of credits claimed by insurers under § 6–114 of the Insurance Article; and</text> </level> <level label="3"> <text>the number of insurers claiming the credit.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-308" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>Except as otherwise provided in this section, the Secretary shall adopt regulations to carry out this subtitle.</text> </level> <level label="b"> <text>The Comptroller shall adopt regulations to provide for the computation, carryover, and recapture of the credit under § 10-704.4 of the Tax - General Article.</text> </level> <level label="c"> <text>The State Department of Assessments and Taxation shall adopt regulations to provide for the computation, carryover, and recapture of the credit under §§ 8-214 and 8-411 of the Tax - General Article.</text> </level> <level label="d"> <text>The Insurance Commissioner shall adopt regulations to provide for the computation, carryover, and recapture of the credit under § 6-114 of the Insurance Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-309" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="3" subtitle_name="Job Creation Tax Credit"> <level label="a"> <text>Subject to subsection (b) of this section, this subtitle and the tax credit authorized under it shall terminate on January 1, 2032.</text> </level> <level label="b"> <text>After termination of this subtitle:</text> <level label="1"> <text>a business entity may be considered for eligibility for the tax credit authorized under this subtitle based on positions filled before termination of this subtitle, provided that the other requirements of the subtitle are satisfied; and</text> </level> <level label="2"> <text>tax credits earned may be carried forward and are subject to recapture in accordance with § 6–305 of this subtitle.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-401" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle.</text> </level> <level label="c"> <text>“Eligible economic development project” means an economic development project that:</text> <level label="1"> <text>establishes or expands a business facility within a Tier I county; and</text> </level> <level label="2"> <text>is approved for a project tax credit in accordance with this subtitle.</text> </level> </level> <level label="d"> <level label="1"> <text>“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.</text> </level> <level label="2"> <text>“Eligible project cost” includes:</text> <level label="i"> <text>the cost of:</text> <level label="1"> <text>obligations for labor and payments made to contractors, subcontractors, builders, and suppliers;</text> </level> <level label="2"> <text>acquiring land, rights in land, and costs incidental to acquiring land or rights in land;</text> </level> <level label="3"> <text>contract bonds and insurance needed during the acquisition, construction, or installation of the project;</text> </level> <level label="4"> <text>test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services;</text> </level> <level label="5"> <text>performing duties required by or consequent to the acquisition, construction, and installation of the project;</text> </level> <level label="6"> <text>installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities; and</text> </level> <level label="7"> <text>bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities;</text> </level> </level> <level label="ii"> <text>the interest cost before and during the acquisition, construction, installation, and equipping of the project, and for up to 2 years after project completion;</text> </level> <level label="iii"> <text>legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project; and</text> </level> <level label="iv"> <text>a qualified business entity’s cost to furnish and equip a new location for ordinary business functions, including:</text> <level label="1"> <text>the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment; and</text> </level> <level label="2"> <text>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.</text> </level> </level> </level> </level> <level label="e"> <text>“Project tax credit” means a tax credit for eligible project costs allowed under § 6–403 of this subtitle.</text> </level> <level label="f"> <text>“Qualified business entity” means a person that:</text> <level label="1"> <level label="i"> <text>conducts or operates a trade or business in the State; or</text> </level> <level label="ii"> <text>operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and</text> </level> </level> <level label="2"> <text>is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle.</text> </level> </level> <level label="g"> <level label="1"> <text>“Qualified position” means a position that:</text> <level label="i"> <text>is a full–time position and is of indefinite duration;</text> </level> <level label="ii"> <text>pays at least 120% of the State minimum wage;</text> </level> <level label="iii"> <text>is in a Tier I county;</text> </level> <level label="iv"> <text>is newly created because a business facility begins or expands in one location in a Tier I county; and</text> </level> <level label="v"> <text>is filled.</text> </level> </level> <level label="2"> <text>“Qualified position” does not include a position that is:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>created through a change in ownership of a trade or business;</text> </level> <level label="iii"> <text>created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;</text> </level> <level label="iv"> <text>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</text> </level> <level label="v"> <text>filled for a period of less than 12 months.</text> </level> </level> </level> <level label="h"> <level label="1"> <text>“Tier I county” means a county with:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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.</text> </level> </level> <level label="2"> <text>“Tier I county” includes a county that:</text> <level label="i"> <text>no longer meets any of the criteria stated in paragraph (1) of this subsection; but</text> </level> <level label="ii"> <text>has met at least one of the criteria at some time during the preceding 24–month period.</text> </level> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-402" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <level label="a"> <level label="1"> <text>To qualify for a project tax credit, a person shall be certified by the Secretary as meeting the requirements of this subtitle and as being eligible for the tax credit.</text> </level> <level label="2"> <text>The Secretary may not certify a person as a qualified business entity unless the person notifies the Department of its intent to seek certification before hiring any qualified employees to fill the qualified positions necessary to satisfy the employment threshold under subsection (b)(2) of this section.</text> </level> </level> <level label="b"> <text>To be eligible for a project tax credit, a person shall:</text> <level label="1"> <text>establish or expand a business facility that:</text> <level label="i"> <text>is located in a Tier I county; and</text> </level> <level label="ii"> <level label="1"> <level label="A"> <text>is located in a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or</text> </level> </level> <level label="B"> <text>is eligible for funding outside of a priority funding area under § 5–7B–05 or § 5–7B–06 of the State Finance and Procurement Article; or</text> </level> <level label="2"> <text>is located in a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County;</text> </level> </level> </level> <level label="2"> <text>during any 24–month period, create at least the number of qualified positions at the new or expanded business facility specified in § 6–403(b) of this subtitle; and</text> </level> <level label="3"> <text>be primarily engaged at the new or expanded business facility in any combination of:</text> <level label="i"> <text>manufacturing or mining;</text> </level> <level label="ii"> <text>transportation or communications;</text> </level> <level label="iii"> <text>filmmaking, resort business, or recreational business;</text> </level> <level label="iv"> <text>agriculture, forestry, or fishing;</text> </level> <level label="v"> <text>research, development, or testing;</text> </level> <level label="vi"> <text>biotechnology;</text> </level> <level label="vii"> <text>computer programming, information technology, or other computer–related services;</text> </level> <level label="viii"> <text>central services for a business entity engaged in financial services, real estate services, or insurance services;</text> </level> <level label="ix"> <text>the operation of central administrative offices;</text> </level> <level label="x"> <text>the operation of a company headquarters other than the headquarters of a professional sports organization;</text> </level> <level label="xi"> <text>the operation of a public utility;</text> </level> <level label="xii"> <text>warehousing;</text> </level> <level label="xiii"> <text>other business services; or</text> </level> <level label="xiv"> <text>the growth, processing, or dispensing of cannabis in accordance with the laws of the State.</text> </level> </level> </level> <level label="c"> <text>To be certified as a qualified business entity for a project tax credit, a person shall submit to the Secretary an application that specifies:</text> <level label="1"> <text>the effective date of the start–up or expansion;</text> </level> <level label="2"> <text>the number of full–time employees before the start–up or expansion and the payroll of the existing employees;</text> </level> <level label="3"> <text>the number of qualified positions created and qualified employees hired and the payroll of the new qualified employees; and</text> </level> <level label="4"> <text>any other information that the Secretary requires by regulation.</text> </level> </level> <level label="d"> <text>The Secretary may require any information required under this section to be verified by an independent auditor that the qualified business entity selects.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-403" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <level label="a"> <level label="1"> <text>A qualified business entity may claim a project tax credit for the cost of an eligible economic development project in a Tier I county if the total eligible project cost for the eligible economic development project is at least $500,000.</text> </level> <level label="2"> <text>A qualified business entity is not entitled to a project tax credit for a cost incurred before notifying the Department of its intent to seek certification as qualifying for the project tax credit.</text> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>Subject to the limitation in paragraph (2) of this subsection, the project tax credit allowed under this section is the lesser of the maximum amount specified in subparagraph (ii) of this paragraph and the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years.</text> </level> <level label="ii"> <text>For purposes of calculation of the credit under subparagraph (i) of this paragraph, the maximum amount is:</text> <level label="1"> <text>$5,000,000, if the qualified business entity creates at least 50 qualified positions;</text> </level> <level label="2"> <text>$2,500,000, if the qualified business entity creates at least 25 qualified positions but fewer than 50 qualified positions; or</text> </level> <level label="3"> <text>$1,000,000, if the qualified business entity creates at least 10 qualified positions but fewer than 25 qualified positions.</text> </level> </level> </level> <level label="2"> <text>Except as provided in subsections (d) and (e) of this section, the project tax credit allowed in a taxable year may not exceed the State tax for that year on the qualified business entity’s income.</text> </level> <level label="3"> <text>The Department shall certify the amount of the project tax credit for which a qualified business entity is eligible.</text> </level> <level label="4"> <level label="i"> <text>A qualified business entity shall report to the Department the amount of the project tax credit that the entity claims on the entity’s tax return for each taxable year that the entity claims any portion of the project tax credit.</text> </level> <level label="ii"> <text>The failure of the qualified business entity to provide the information required under subparagraph (i) of this paragraph shall disqualify the entity from claiming any unclaimed amount of the project tax credit.</text> </level> </level> </level> <level label="c"> <text>A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may claim the project tax credit against the insurance premium tax.</text> </level> <level label="d"> <level label="1"> <text>Subject to paragraph (2) of this subsection, if the eligible project cost for the eligible economic development project exceeds the State tax on the qualified business entity’s income, the qualified business entity may apply any excess as a project tax credit for succeeding taxable years against the State tax on the qualified business entity’s income until the earlier of:</text> <level label="i"> <text>the full amount of the excess is used; or</text> </level> <level label="ii"> <text>the expiration of the 10th taxable year following the credit year.</text> </level> </level> <level label="2"> <level label="i"> <text>A qualified business entity may claim a prorated share of the credit under this subsection if:</text> <level label="1"> <text>during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and</text> </level> <level label="2"> <text>the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years.</text> </level> </level> <level label="ii"> <text>The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit.</text> </level> </level> </level> <level label="e"> <level label="1"> <text>Subject to the limitation in paragraph (4) of this subsection, this subsection applies to any taxable year after the 4th credit year.</text> </level> <level label="2"> <text>A qualified business entity other than a person subject to taxation under Title 6 of the Insurance Article may claim a refund in the amount, if any, by which the qualified business entity’s unused excess exceeds the State tax for the taxable year.</text> </level> <level label="3"> <text>A qualified business entity that is subject to taxation under Title 6 of the Insurance Article may:</text> <level label="i"> <text>apply any excess of eligible project costs for the eligible economic development project over the cumulative amount used as a project tax credit for the taxable year and all prior taxable years as a tax credit against the premium tax imposed for the taxable year; and</text> </level> <level label="ii"> <text>claim a refund in the amount, if any, by which the unused excess exceeds the premium tax for the taxable year.</text> </level> </level> <level label="4"> <text>For any taxable year, the total amount claimed as a refund under this subsection may not exceed the amount of tax that the qualified business entity is required to withhold for the taxable year from the wages of qualified employees under § 10–908 of the Tax – General Article.</text> </level> <level label="5"> <level label="i"> <text>A qualified business entity may claim a prorated share of the credit under this subsection if:</text> <level label="1"> <text>during any taxable year after the qualified business entity is certified for the tax credit, the number of qualified positions filled by the qualified business entity falls below the minimum number of qualified positions required to qualify for the project tax credit, but does not fall below 10; and</text> </level> <level label="2"> <text>the qualified business entity has maintained at least the minimum number of qualified positions required to qualify for the project tax credit for at least 5 years.</text> </level> </level> <level label="ii"> <text>The prorated share of the credit is calculated based on the number of qualified positions filled for the taxable year divided by the minimum number of qualified positions required to qualify for the project tax credit.</text> </level> </level> </level> <level label="f"> <text>A qualified business entity shall attach the certification required under § 6–402 of this subtitle to the tax return on which the project tax credit is claimed.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-404" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <text>A refund payable to a qualified business entity under § 6–403(e) of this subtitle reduces:</text> <level label="1"> <text>the income tax revenue from corporations if the qualified business entity is a corporation subject to the income tax under Title 10 of the Tax – General Article;</text> </level> <level label="2"> <text>the income tax revenue from individuals if the qualified business entity is:</text> <level label="i"> <text>an individual subject to the income tax under Title 10 of the Tax – General Article; or</text> </level> <level label="ii"> <text>an organization exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and</text> </level> </level> <level label="3"> <text>insurance premium tax revenues if the qualified business entity is subject to taxation under Title 6 of the Insurance Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-405" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <text>For any taxable year, if a qualified business entity claims the project tax credit authorized under this subtitle, the qualified business entity may not also claim a credit authorized under Subtitle 3 of this title.</text> </section> <section article="gec" article_name="Economic Development" number="6-406" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="4" subtitle_name="One Maryland Economic Development Tax Credit"> <text>The Secretary shall adopt regulations to specify criteria and procedures for application and approval of projects for the tax credit under this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="6-601" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Authority” means the Maryland E–Nnovation Initiative Fund Authority established under § 6–605 of this subtitle.</text> </level> <level label="c"> <text>“Endowment proceeds” means those investment earnings accruing to a research endowment of a nonprofit institution of higher education and available for expenditure by the institution in accordance with § 6–612 of this subtitle.</text> </level> <level label="d"> <text>“Fund” means the Maryland E–Nnovation Initiative Fund created under § 6–604 of this subtitle.</text> </level> <level label="e"> <text>“Governing board” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="f"> <text>“Governing body” means:</text> <level label="1"> <text>a governing board;</text> </level> <level label="2"> <text>the governing entity of a private nonprofit institution of higher education; or</text> </level> <level label="3"> <text>the governing entity of a regional higher education center.</text> </level> </level> <level label="g"> <level label="1"> <text>“Nonprofit institution of higher education” means an institution of postsecondary education located in the State, that receives State funds in the annual operating budget and that generally limits enrollment to graduates of secondary schools and awards degrees at either the associate, baccalaureate, or graduate level.</text> </level> <level label="2"> <text>“Nonprofit institution of higher education” includes public and private nonprofit institutions of higher education located in the State.</text> </level> </level> <level label="h"> <text>“Private nonprofit institution of higher education” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="i"> <text>“Program” means the Maryland E–Nnovation Initiative Program under this subtitle.</text> </level> <level label="j"> <text>“Qualified donation” means any private donation, gift, irrevocable pledge, or bequest to a research endowment in accordance with § 6–613 of this subtitle.</text> </level> <level label="k"> <text>“Regional higher education center” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="l"> <text>“Research endowment” means an account established at or administered by a nonprofit institution of higher education in accordance with § 6–612 of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-604" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>There is a Maryland E–Nnovation Initiative Fund in the Department.</text> </level> <level label="b"> <text>The Secretary shall manage and supervise the Fund.</text> </level> <level label="c"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="d"> <text>The Fund consists of:</text> <level label="1"> <text>revenue distributed to the Fund under § 2–202(a)(1) of the Tax – General Article;</text> </level> <level label="2"> <text>money appropriated in the State budget to the Fund; and</text> </level> <level label="3"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="e"> <text>For each of fiscal years 2016 through 2026, the Governor shall include in the budget bill an appropriation to the Fund in an amount that when combined with the amount estimated to be distributed to the Fund under subsection (d)(1) of this section equals at least $8,500,000.</text> </level> <level label="f"> <text>The Department may use the Fund to:</text> <level label="1"> <text>finance research endowments at nonprofit institutions of higher education in scientific and technical fields of study; and</text> </level> <level label="2"> <text>pay the related administrative, legal, and actuarial expenses of the Department.</text> </level> </level> <level label="g"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any investment earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="h"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-605" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <text>There is a Maryland E–Nnovation Initiative Fund Authority in the Department.</text> </section> <section article="gec" article_name="Economic Development" number="6-606" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <text>The Authority consists of:</text> <level label="1"> <text>the Chief Executive Officer of the Maryland Technology Development Corporation, or the Chief Executive Officer’s designee;</text> </level> <level label="2"> <text>the Executive Vice President of the Maryland Technology Development Corporation, or the Executive Vice President’s designee;</text> </level> <level label="3"> <text>the Secretary of Commerce, or the Secretary’s designee;</text> </level> <level label="4"> <text>the Managing Director of the Maryland Venture Fund, or the Managing Director’s designee;</text> </level> <level label="5"> <text>the Chancellor of the University System of Maryland, or the Chancellor’s designee; and</text> </level> <level label="6"> <text>two individuals from the private sector not affiliated with higher education appointed by the President of the Senate and the Speaker of the House to the Maryland Innovation Initiative under § 10–455 of this article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-607" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>The chair of the Authority shall be chosen by the members of the Authority.</text> </level> <level label="b"> <text>The Authority shall determine the manner of election of officers and their terms of office.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-608" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <level label="1"> <text>Four members of the Authority are a quorum.</text> </level> <level label="2"> <text>An act of the Authority shall be approved by a majority vote of the members attending a meeting at which a quorum is present.</text> </level> </level> <level label="b"> <text>A member of the Authority:</text> <level label="1"> <text>may not receive compensation as a member of the Authority; but</text> </level> <level label="2"> <text>is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-609" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <text>The Authority shall provide advice to and consult with the Department in connection with the administration of the Program under this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="6-612" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>The governing body of each nonprofit institution of higher education may create and administer one or more research endowments to receive funding from the Fund.</text> </level> <level label="b"> <text>A research endowment consists of funds distributed by the Authority from the Fund in accordance with § 6–618 of this subtitle and qualified donations.</text> </level> <level label="c"> <level label="1"> <text>The governing body of a nonprofit institution of higher education may invest funds deposited into the research endowment in a manner consistent with other institutional endowments managed by the institution.</text> </level> <level label="2"> <text>Any interest or other investment earnings on the funds invested are retained by the nonprofit institution of higher education to be used for the purposes set forth in this subtitle.</text> </level> </level> <level label="d"> <text>Investment earnings accruing to the research endowment of a nonprofit institution of higher education may be expended by the governing body of the institution only for the eligible uses under § 6–614 of this subtitle.</text> </level> <level label="e"> <text>The governing body of a nonprofit institution of higher education is exempt from liability for any loss or decrease in value of the assets or income of a research endowment, unless the losses or decreases in value result from bad faith, gross negligence, or intentional misconduct.</text> </level> <level label="f"> <text>The governing body of a nonprofit institution of higher education shall issue rules for the administration of research endowments that fulfill the purposes and requirements of this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-613" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>Private donations to a research endowment shall be considered a qualified donation if:</text> <level label="1"> <text>the donation or pledge is expressly or specifically restricted by the donor for one or more of the eligible uses under § 6–614 of this subtitle;</text> </level> <level label="2"> <level label="i"> <text>except as provided in item (ii) of this item, the individual donation or pledge is a minimum of $500,000 or is bundled with other qualified donations to meet the $500,000 threshold; or</text> </level> <level label="ii"> <text>for an individual donation or pledge made to a research endowment of a nonprofit institution of higher education that has an annual unrestricted current funds budget of less than $250,000,000, the individual donation or pledge is a minimum of $200,000 or is bundled with other qualified donations to meet the $200,000 threshold; and</text> </level> </level> <level label="3"> <text>the nonprofit institution of higher education accepts the donation from individuals, partnerships, associations, public or private for–profit and nonprofit corporations, or nongovernmental foundations.</text> </level> </level> <level label="b"> <text>Notwithstanding subsection (a) of this section, a nonprofit institution of higher education may designate unrestricted gifts or bequests, or a portion of an unrestricted gift or bequest, for use as a qualified donation.</text> </level> <level label="c"> <text>A qualified donation excludes:</text> <level label="1"> <text>any donation received by a nonprofit institution of higher education prior to October 1, 2014;</text> </level> <level label="2"> <text>educational or general fees, auxiliary fees, or other student fees generated by the institution;</text> </level> <level label="3"> <text>proceeds from promissory notes, bonds, loans, or other instruments evidencing an indebtedness or any other obligation of repayment by the governing body of a nonprofit institution of higher education to the maker of the instrument; or</text> </level> <level label="4"> <text>any other funds received from the State or federal government.</text> </level> </level> <level label="d"> <level label="1"> <text>The president of each nonprofit institution of higher education or the president’s designee shall make the initial determination of whether a donation constitutes a qualified donation.</text> </level> <level label="2"> <text>The president of the nonprofit institution of higher education shall provide a report to the governing body of the institution at least once each fiscal year regarding the amount of qualified donations the institution has received.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-614" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>Endowment proceeds shall be expended by a nonprofit institution of higher education to further basic and applied research in scientific and technical fields of study as designated by the Authority that offer promising and significant economic impacts and the opportunity to develop clusters of technological innovation in the State, including:</text> <level label="1"> <text>physical sciences;</text> </level> <level label="2"> <text>life and neuro sciences;</text> </level> <level label="3"> <text>engineering;</text> </level> <level label="4"> <text>mathematical and computational sciences;</text> </level> <level label="5"> <text>regulatory science;</text> </level> <level label="6"> <text>autonomous systems;</text> </level> <level label="7"> <text>aeronautical and space science;</text> </level> <level label="8"> <text>environmental sciences;</text> </level> <level label="9"> <text>behavioral and language science;</text> </level> <level label="10"> <text>health sciences;</text> </level> <level label="11"> <text>agriculture; or</text> </level> <level label="12"> <text>cybersecurity.</text> </level> </level> <level label="b"> <text>Endowment proceeds may be expended by a nonprofit institution of higher education for:</text> <level label="1"> <text>the payment of the base salaries of newly endowed department chairs, new professorship positions, new research scientists, or new research staff positions, including research technicians and support personnel, and to fund affiliated graduate or undergraduate student research fellowships, if the positions or fellowships are engaged in the areas of research identified in subsection (a) of this section; or</text> </level> <level label="2"> <text>the purchase of basic infrastructure, including laboratory and scientific equipment or other essential equipment and materials, related to an area of research identified in subsection (a) of this section.</text> </level> </level> <level label="c"> <text>An individual in a position that is funded by endowment proceeds under subsection (b)(1) of this section shall:</text> <level label="1"> <text>work at least 20% of the year in support of a federal laboratory or associated federal laboratory research support organization;</text> </level> <level label="2"> <text>hold a joint appointment or secondary position at another nonprofit institution of higher education in the State; or</text> </level> <level label="3"> <text>work at least 20% of the year in support of entrepreneurial activities with a company engaged in one or more of the research areas identified in subsection (a) of this section.</text> </level> </level> <level label="d"> <text>The Authority shall issue eligibility criteria regarding the expenditure of endowment proceeds to pay the base salaries of personnel, fund student fellowships, and purchase basic infrastructure.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-615" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>The governing body of each nonprofit institution of higher education shall submit a research endowment plan to the Authority prior to submitting its first request for a distribution of matching funds from the Fund.</text> </level> <level label="b"> <text>The research plan shall include:</text> <level label="1"> <text>any information requested by the Authority to ensure compliance with the requirements of this subtitle; and</text> </level> <level label="2"> <text>a demonstration of interest from qualified private donors to meet the criteria established by the Authority.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-618" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>Except as provided in § 6–619 of this subtitle, the Authority shall make available no more than 25% of cumulative program funds from the Fund to a single nonprofit institution of higher education to match qualified donations.</text> </level> <level label="b"> <text>A nonprofit institution of higher education seeking a distribution of matching funds from the Fund shall first obtain qualified donations in an amount equal to the amount of matching funds requested for distribution and shall submit a request to the Authority.</text> </level> <level label="c"> <text>The request shall include:</text> <level label="1"> <text>the amount requested for distribution to the nonprofit institution of higher education in accordance with subsection (a) of this section;</text> </level> <level label="2"> <text>the amount of qualified donations designated for use in requesting the distribution of matching funds from the Fund;</text> </level> <level label="3"> <text>an explanation of how the proposed use satisfies the criteria for eligible uses of endowment proceeds under § 6–614 of this subtitle;</text> </level> <level label="4"> <text>an explanation of how the proposed use of the endowment proceeds furthers the purposes of this subtitle and addresses the research needs of the institution as identified in the research plan; and</text> </level> <level label="5"> <text>a designation of the applicable research endowment into which the requested matching funds are to be deposited.</text> </level> </level> <level label="d"> <text>The Authority shall review each request for distribution of matching funds from the Fund for compliance with the provisions of this subtitle and Department regulations.</text> </level> <level label="e"> <text>If the Authority approves the request of a nonprofit institution of higher education, the Authority shall distribute matching funds to the applicable research endowment in an amount equal to the amount of qualified donations.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-619" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <text>Within 90 days after approval by the Authority of a request for matching funds under § 6–618 of this subtitle, each nonprofit institution of higher education shall deposit an amount of qualified donations equal to or greater than the total amount of funds allocated for distribution to the nonprofit institution of higher education in accordance with § 6–618 of this subtitle.</text> </level> <level label="b"> <text>If a nonprofit institution of higher education fails to have deposited into its research endowments the required amount of qualified donations as required under subsection (a) of this section, any portion of the funds allocated to the institution that has not been distributed shall be reallocated to another nonprofit institution of higher education in accordance with this subtitle.</text> </level> <level label="c"> <level label="1"> <text>This subsection applies to a nonprofit institution of higher education that anticipates that the institution will not receive the entire amount of a qualified donation on which the institution intends to rely for purposes of requesting matching funds from the Authority before the end of the fiscal year in which the research endowment plan is approved.</text> </level> <level label="2"> <text>Except for the type of funds set forth in § 6–613(c)(2), (3), and (4) of this subtitle, a nonprofit institution of higher education may deposit available funds from other sources within the nonprofit institution of higher education into the research endowment for purposes of satisfying the 90–day deposit requirement in subsection (a) of this section if the nonprofit institution of higher education has disclosed the following information in the research endowment plan approved by the Authority:</text> <level label="i"> <text>the intent of the nonprofit institution of higher education to rely on the other funds;</text> </level> <level label="ii"> <text>the source of the other funds; and</text> </level> <level label="iii"> <text>other information the Authority may have requested regarding other funds at the time of its consideration of the approved research endowment plan.</text> </level> </level> </level> <level label="d"> <text>If the Authority fails to allocate the funds in the Fund under this subtitle and a nonprofit institution of higher education has previously received 25% of cumulative program funds from the Fund, the Authority may distribute additional funds to the nonprofit institution in accordance with this subtitle.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-622" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <text>The Department shall administer this subtitle and shall adopt regulations to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="6-623" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="6" subtitle_name="Maryland E-Nnovation Initiative Program"> <level label="a"> <level label="1"> <text>On or before January 1, 2016, and January 1 of each subsequent year, the Department shall submit a report on the implementation of the Program to the Governor and, in accordance with § 2–1257 of the State Government Article, the Senate Budget and Taxation Committee and the House Ways and Means Committee.</text> </level> <level label="2"> <text>The Department shall publish the report on the Department’s website in a publicly available format.</text> </level> <level label="3"> <text>The report published on the website may not include any proprietary or confidential information.</text> </level> </level> <level label="b"> <text>The report shall include, with respect to each nonprofit institution of higher education that has received an allocation of funds from the Fund:</text> <level label="1"> <text>the name and address of the institution;</text> </level> <level label="2"> <text>the names of the individuals making decisions on behalf of the institution regarding expenditure of the funds allocated;</text> </level> <level label="3"> <text>the amount of funds received during the previous fiscal year;</text> </level> <level label="4"> <text>the cumulative amount of funds received; and</text> </level> <level label="5"> <text>the amount of funds remaining unspent at the end of the previous fiscal year.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-801" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Benefit year” means a taxable year in which a qualified business entity claims a program benefit established under § 6–805 of this subtitle.</text> </level> <level label="c"> <level label="1"> <text>“Business entity” means a person conducting or operating a trade or business that is:</text> <level label="i"> <text>primarily engaged in activities that, in accordance with the North American Industrial Classification System (NAICS), United States Manual, United States Office of Management and Budget, 2012 Edition, would be included in Sector 31, 32, or 33; or</text> </level> <level label="ii"> <text>located in an opportunity zone.</text> </level> </level> <level label="2"> <text>“Business entity” does not include:</text> <level label="i"> <text>a refiner, as defined in § 10–101 of the Business Regulation Article;</text> </level> <level label="ii"> <text>a person conducting or operating a trade or business that is:</text> <level label="1"> <text>providing adult entertainment, as determined by the Department;</text> </level> <level label="2"> <text>primarily engaged in retail activities, unless the person is operating a grocery store located in an opportunity zone; or</text> </level> <level label="3"> <text>primarily engaged in the sale or distribution of alcoholic beverages; or</text> </level> </level> <level label="iii"> <text>the following entities:</text> <level label="1"> <text>a private or commercial golf course or country club;</text> </level> <level label="2"> <text>a tanning salon; or</text> </level> <level label="3"> <text>a bail bondsman.</text> </level> </level> </level> </level> <level label="d"> <text>“Eligible project” means a facility operated by a business entity in a Tier I area or Tier II area.</text> </level> <level label="e"> <text>“Existing business entity” means a business entity that is located in the State at the time it notifies the Department under § 6–803(c) of this subtitle.</text> </level> <level label="f"> <text>“Grocery store” has the meaning stated in § 9–254 of the Tax – Property Article.</text> </level> <level label="g"> <text>“New business entity” means a business entity that is not located in the State at the time it notifies the Department under § 6–803(b) of this subtitle.</text> </level> <level label="h"> <text>“Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code.</text> </level> <level label="i"> <text>“Program” means the More Jobs for Marylanders Program established under this subtitle.</text> </level> <level label="j"> <text>“Qualified business entity” means a new business entity or an existing business entity operating an eligible project under this subtitle.</text> </level> <level label="k"> <level label="1"> <text>“Qualified position” means a position that:</text> <level label="i"> <text>is full–time and of indefinite duration;</text> </level> <level label="ii"> <level label="1"> <text>except as provided in item 2 of this item, for a position in a facility that is located in an opportunity zone, pays an average annual salary that exceeds $50,000; or</text> </level> <level label="2"> <level label="A"> <text>for a position in a facility of a business entity described under subsection (c)(1)(i) of this section that is provided a certificate under § 6–805 of this subtitle before June 1, 2022, pays at least 120% of the State minimum wage; or</text> </level> </level> <level label="B"> <text>for a position in a facility of a business entity described under subsection (c)(1)(i) of this section that is provided a certificate under § 6–805 of this subtitle on or after June 1, 2022, pays at least 150% of the State minimum wage;</text> </level> </level> <level label="iii"> <text>is located in a facility;</text> </level> <level label="iv"> <text>is newly created at a single facility in the State; and</text> </level> <level label="v"> <text>is filled.</text> </level> </level> <level label="2"> <text>“Qualified position” does not include a position that is:</text> <level label="i"> <text>created when an employment function is shifted from an existing facility of a business entity in the State to another facility of the same business entity if the position is not a net new job in the State;</text> </level> <level label="ii"> <text>created through a change in ownership of a trade or business;</text> </level> <level label="iii"> <text>created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;</text> </level> <level label="iv"> <text>created when an employment function is contractually shifted from an existing business entity to another business entity in the State if the position is not a net new job in the State; or</text> </level> <level label="v"> <text>filled for a period of less than 12 months.</text> </level> </level> </level> <level label="l"> <text>“Tier I area” means:</text> <level label="1"> <text>a Tier I county, as defined in § 1–101 of this article;</text> </level> <level label="2"> <text>a county designated by the Department that is not a county described in item (1) of this subsection, not to exceed three counties; or</text> </level> <level label="3"> <text>an opportunity zone.</text> </level> </level> <level label="m"> <text>“Tier II area” means an area that is not an area described in subsection (l) of this section.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-802" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>There is a More Jobs for Marylanders Program in the Department.</text> </level> <level label="b"> <text>The purpose of the Program is to:</text> <level label="1"> <text>incentivize the creation of new manufacturing jobs in the State; and</text> </level> <level label="2"> <text>attract new businesses to and encourage the expansion of existing businesses within opportunity zones.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-803" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>A business entity may apply to the Department to enroll an eligible project in the Program if the eligible project:</text> <level label="1"> <text>is in a Tier I area and the business entity intends:</text> <level label="i"> <text>with respect to notice provided under this section to the Department before June 1, 2022, to create at least five qualified positions at the project location; or</text> </level> <level label="ii"> <text>with respect to notice provided under this section to the Department on or after June 1, 2022, to create at least 10 qualified positions at the project location; or</text> </level> </level> <level label="2"> <text>is in a Tier II area and the business entity intends:</text> <level label="i"> <text>with respect to notice provided under this section to the Department before June 1, 2022, to create at least 10 qualified positions at the project location; or</text> </level> <level label="ii"> <text>with respect to notice provided under this section to the Department on or after June 1, 2022, to create at least 20 qualified positions at the project location.</text> </level> </level> </level> <level label="a–1"> <level label="1"> <text>The Department may not refuse to certify a business entity conducting a trade or a business as a medical cannabis grower, processor, or dispensary or any other cannabis establishment licensed by the State solely because the business entity is a cannabis establishment, if the business entity otherwise satisfies the requirements of this subtitle.</text> </level> <level label="2"> <text>If, before July 1, 2023, a business entity described under paragraph (1) of this subsection was denied certification under this subtitle solely because the business entity was a cannabis establishment, the business entity may reapply to the Department for certification.</text> </level> </level> <level label="b"> <level label="1"> <text>A new business entity may not be certified as a qualified business entity unless the new business entity:</text> <level label="i"> <text>notifies the Department of its intent to seek designation of an eligible project before establishing its facility in the State; and</text> </level> <level label="ii"> <text>offers an ongoing job skills enhancement training program or postsecondary education program that is approved by the Department.</text> </level> </level> <level label="2"> <text>The Department may certify a new business entity as a qualified business entity after the new business entity provides the required notice under paragraph (1)(i) of this subsection, applies to the Department under paragraph (3) of this subsection, and establishes and operates an eligible project.</text> </level> <level label="3"> <text>A new business entity shall submit to the Department an application containing at least the following information:</text> <level label="i"> <text>the anticipated date of the establishment and initial operation of the facility and the nature of its operations;</text> </level> <level label="ii"> <text>the expected location of the facility;</text> </level> <level label="iii"> <text>the estimated number of qualified positions to be created and qualified employees to be hired and the anticipated payroll of the new qualified employees; and</text> </level> <level label="iv"> <text>any other information the Department requires.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>An existing business entity may apply to be certified as a qualified business entity if the existing business entity increases the number of qualified positions as required under subsection (a) of this section for an eligible project in a Tier I area or a Tier II area.</text> </level> <level label="2"> <text>An existing business entity may not be certified as a qualified business entity unless the business entity:</text> <level label="i"> <text>notifies the Department of its intent to seek designation of an eligible project prior to hiring any employees to fill the qualified positions necessary to meet the requirements of this subtitle; and</text> </level> <level label="ii"> <text>offers an ongoing job skills enhancement training program or postsecondary education program that is approved by the Department.</text> </level> </level> <level label="3"> <text>An existing business entity shall submit an application to the Department containing at least the following information:</text> <level label="i"> <text>the number of full–time employees existing before the expansion and the payroll of the existing employees;</text> </level> <level label="ii"> <text>the estimated number of qualified positions to be created and qualified employees to be hired and the anticipated payroll of the new qualified employees; and</text> </level> <level label="iii"> <text>any other information that the Department requires.</text> </level> </level> </level> <level label="d"> <text>A business entity must begin hiring the employees to fill the qualified positions necessary to meet the requirements of this subtitle within 12 months after it notifies the Department of its intent to seek designation of an eligible project.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-804" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, the Program benefits authorized under this section may be claimed by a qualified business entity for up to 10 consecutive benefit years.</text> </level> <level label="2"> <text>In the case of a qualified business entity that is located in a Tier II area and is provided a certificate under § 6–805 of this subtitle on or after June 1, 2022, the Program benefits authorized under this section may be claimed by the qualified business entity for up to 5 consecutive benefit years.</text> </level> </level> <level label="b"> <text>On enrollment in the Program:</text> <level label="1"> <text>a new business entity in a Tier I area that is provided a certificate under § 6–805 of this subtitle before June 1, 2022, is eligible for:</text> <level label="i"> <text>a credit against the State income tax, established under § 10–741(b) of the Tax – General Article;</text> </level> <level label="ii"> <text>a credit against the State property tax, established under § 9–110 of the Tax – Property Article;</text> </level> <level label="iii"> <text>a refund of sales and use tax paid during the immediately preceding taxable year, as provided under § 11–411 of the Tax – General Article; and</text> </level> <level label="iv"> <text>a waiver of fees charged by the State Department of Assessments and Taxation, established under § 1–203.1 of the Corporations and Associations Article; and</text> </level> </level> <level label="2"> <text>except as provided in subsection (c) of this section, a new business entity not described under item (1) of this subsection or an existing business entity that operates an eligible project is eligible for a credit against the State income tax, established under § 10–741(b) of the Tax – General Article.</text> </level> </level> <level label="c"> <text>The income tax credit established under § 10–741(b) of the Tax – General Article is not available to an existing business entity if the entity moves its facility to another county in the State on or after June 1, 2017.</text> </level> <level label="d"> <text>If the number of qualified positions at the eligible project decreases to a number less than the number established in the first benefit year, the project shall be removed from the Program and all program benefits terminate.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-805" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>The Department shall provide to a qualified business entity a certificate that:</text> <level label="1"> <text>certifies the eligible project that is enrolled in the Program;</text> </level> <level label="2"> <text>provides the duration of the certification; and</text> </level> <level label="3"> <text>provides any additional information necessary for the Comptroller and Department to administer the Program.</text> </level> </level> <level label="b"> <level label="1"> <text>For a qualified business entity that has submitted the notice required under § 6–803(b)(1)(i) or (c)(2)(i) of this subtitle before June 1, 2022, the Department may not provide the qualified business entity a certificate on or after June 1, 2022.</text> </level> <level label="2"> <text>For a qualified business entity that has submitted the notice required under § 6–803(b)(1)(i) or (c)(2)(i) of this subtitle on or after June 1, 2022, the Department may not provide the qualified business entity a certificate on or after June 1, 2024.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-806" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>The Department may revoke its certification under this subtitle, in whole or in part, if any representation made by a qualified business entity is determined by the Department to have been false when made.</text> </level> <level label="b"> <text>If the Department revokes its certification as provided under subsection (a) of this section, the Comptroller may make an assessment against the qualified business entity to recapture any amount of a tax credit or any other benefit that the qualified business entity has received.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-807" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <level label="a"> <text>The Department may require that any information provided under this subtitle be verified by an independent certified public accountant that the qualified business entity and the Department select.</text> </level> <level label="b"> <level label="1"> <text>Acceptance by a qualified business entity of the Program benefits under this subtitle shall be deemed to authorize the Comptroller to share with the Department any information received from a qualified business entity about eligibility for a benefit allowed under this subtitle.</text> </level> <level label="2"> <text>Information that is received by the Department or Comptroller under paragraph (1) of this subsection is subject to confidentiality requirements established by law.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-808" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <text>The Secretary may adopt any regulation necessary and appropriate to carry out this subtitle.</text> </section> <section article="gec" article_name="Economic Development" number="6-809" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="8" subtitle_name="More Jobs for Marylanders Program"> <text>In accordance with § 2.5–109 of this article, the Department shall submit a report on the qualified business entities receiving final certification in the preceding fiscal year.</text> </section> <section article="gec" article_name="Economic Development" number="6-1001" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Level 1 opportunity zone enhancement” means an enhanced tax credit under the Program for which a qualified opportunity zone business or qualified opportunity fund is eligible if:</text> <level label="1"> <text>the following information is provided to the Department:</text> <level label="i"> <text>the date of the qualified opportunity fund’s investment in the qualified opportunity zone business and the amount of the investment;</text> </level> <level label="ii"> <text>the total project or business investment, including any leverage;</text> </level> <level label="iii"> <text>the address and census tract of the qualified opportunity zone business and the qualified opportunity fund;</text> </level> <level label="iv"> <text>the North American Industrial Classification System Code for the qualified opportunity zone business;</text> </level> <level label="v"> <text>an impact report, including both qualitative and quantitative data on the investment and, as applicable, its progress toward:</text> <level label="1"> <text>creating and retaining jobs;</text> </level> <level label="2"> <text>promoting entrepreneurship, including among women– and minority–owned businesses;</text> </level> <level label="3"> <text>providing affordable housing;</text> </level> <level label="4"> <text>creating access to healthy food;</text> </level> <level label="5"> <text>promoting environmental sustainability; and</text> </level> <level label="6"> <text>benefiting the communities in the opportunity zone in a manner not otherwise specified in this item; and</text> </level> </level> <level label="vi"> <text>unless an applicant provides an affidavit to the Department along with the application that the qualified opportunity zone business property is unoccupied, will be demolished within 1 year of the date of the application, and will remain unoccupied until the demolition is complete, with respect to qualified opportunity zone business property that is an affected property required to be registered with the Department of the Environment under § 6–811 of the Environment Article:</text> <level label="1"> <text>proof of registration with the Department of the Environment;</text> </level> <level label="2"> <text>if the property contains at least one residential rental unit, proof of lead inspections conducted in accordance with §§ 6–815 and 6–819 of the Environment Article;</text> </level> <level label="3"> <text>if the property is an owner–occupied residential rental property:</text> </level> <level label="A"> <text>proof that visual exterior or interior painted surfaces are free of chipping, flaking, or peeling lead–based paint; and</text> </level> <level label="B"> <text>a copy of passing test results for lead–contaminated dust; and</text> </level> <level label="4"> <text>verification that, for the substantial improvement of the property performed in accordance with § 1400Z–2(d)(2)(D)(ii) of the Internal Revenue Code, replacement doors and windows are free of lead–based paint; and</text> </level> </level> <level label="vii"> <text>any other information requested by the Department that meets the transparency goals of the Program; and</text> </level> </level> <level label="2"> <text>for a qualified opportunity zone business located in an opportunity zone in a county with a minimum wage that exceeds the State minimum wage, the qualified opportunity zone business pays to each employee wages that exceed the greater of:</text> <level label="i"> <text>120% of the State minimum wage; or</text> </level> <level label="ii"> <text>120% of the county minimum wage.</text> </level> </level> </level> <level label="c"> <text>“Level 2 opportunity zone enhancement” means an enhanced tax credit under the Program for which a qualified opportunity zone business or qualified opportunity fund is eligible if:</text> <level label="1"> <text>the requirements for a Level 1 opportunity zone enhancement are met;</text> </level> <level label="2"> <level label="i"> <text>accountability to residents of the communities in the opportunity zone is maintained through their representation on any governing board or advisory board of the qualified opportunity zone business; or</text> </level> <level label="ii"> <text>a community benefits agreement is negotiated and agreed to by community groups or strategic industry partnerships, as defined under § 11–701 of the Labor and Employment Article, in the opportunity zone and the qualified opportunity fund that specifies a range of community benefits that the fund agrees to provide as part of the development project, including workforce development or local hiring requirements; and</text> </level> </level> <level label="3"> <level label="i"> <text>for a qualified opportunity zone business located entirely within an opportunity zone in a municipal corporation, the municipal corporation, by resolution or by letter, delivered to the Department by the municipal corporation’s authorized designee, approves the provision of the enhanced tax credits under the Program within the municipal corporation; or</text> </level> <level label="ii"> <text>for a qualified opportunity zone business in an opportunity zone that is not located entirely within a municipal corporation, the county, by resolution or by letter, delivered to the Department by the county’s authorized designee, approves the provision of the enhanced tax credits under the Program within the county.</text> </level> </level> </level> <level label="d"> <text>“Opportunity zone” means an area that has been designated as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code.</text> </level> <level label="e"> <text>“Program” means the Opportunity Zone Enhancement Program in the Department established under § 6–1002 of this subtitle that allows enhanced tax credits under:</text> <level label="1"> <text>§ 6–304 of this title (Job Creation);</text> </level> <level label="2"> <text>§ 6–403 of this title (One Maryland economic development);</text> </level> <level label="3"> <text>§ 10–702 of the Tax – General Article (wages paid in an enterprise zone);</text> </level> <level label="4"> <text>§ 10–725 of the Tax – General Article (biotechnology investment incentive);</text> </level> <level label="5"> <text>§ 10–733 of the Tax – General Article (cybersecurity investment incentive); and</text> </level> <level label="6"> <text>§ 10–741 of the Tax – General Article (More Jobs for Marylanders).</text> </level> </level> <level label="f"> <text>“Qualified opportunity fund” has the meaning stated in § 1400Z–2 of the Internal Revenue Code.</text> </level> <level label="g"> <text>“Qualified opportunity zone business” has the meaning stated in § 1400Z–2 of the Internal Revenue Code.</text> </level> <level label="h"> <text>“Qualified opportunity zone business property” has the meaning stated in § 1400Z–2 of the Internal Revenue Code.</text> </level> <level label="i"> <text>“Qualified opportunity zone property” has the meaning stated in § 1400Z–2 of the Internal Revenue Code.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1002" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>There is an Opportunity Zone Enhancement Program in the Department.</text> </level> <level label="b"> <level label="1"> <text>The Department shall administer the tax credit enhancements offered under the Program.</text> </level> <level label="2"> <text>The enhancements offered under the Program shall be applicable to all taxable years beginning after December 31, 2018, but before January 1, 2027.</text> </level> </level> <level label="c"> <level label="1"> <text>The Department shall publish on its website information about the Program and information reported by a qualified opportunity fund receiving enhanced tax credits under the Program.</text> </level> <level label="2"> <text>The information published on the website:</text> <level label="i"> <text>shall be itemized by qualified opportunity zone;</text> </level> <level label="ii"> <text>shall be summarized in the aggregate; and</text> </level> <level label="iii"> <text>may not include any proprietary or confidential information.</text> </level> </level> </level> <level label="d"> <text>The Department, in consultation with the Department of Housing and Community Development, shall adopt regulations to carry out this subtitle, including criteria and procedures for determining eligibility for a Level 1 or Level 2 opportunity zone enhancement.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1003" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this section, “revitalization area” has the meaning stated in § 6–301 of this title.</text> </level> <level label="b"> <text>For a qualified opportunity zone business that qualifies for a job creation tax credit under § 6–304 of this title:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is equal to:</text> <level label="i"> <text>$3,075 multiplied by the number of qualified employees working in a facility not located in a revitalization area; and</text> </level> <level label="ii"> <text>$5,125 multiplied by the number of qualified employees working in a facility located in a revitalization area; and</text> </level> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is equal to:</text> <level label="i"> <text>$3,300 multiplied by the number of qualified employees working in a facility not located in a revitalization area; and</text> </level> <level label="ii"> <text>$5,500 multiplied by the number of qualified employees working in a facility located in a revitalization area.</text> </level> </level> </level> <level label="c"> <text>The enhanced multiplier authorized under subsection (b) of this section is in substitution for and not in addition to the multiplier under § 6–304(b)(1) of this title.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1004" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this section, “eligible economic development project”, “eligible project cost”, “project tax credit”, and “qualified position” have the meanings stated in § 6–401 of this title.</text> </level> <level label="b"> <text>For a qualified opportunity zone business that qualifies for the One Maryland project tax credit under § 6–403 of this title and creates at least 50 qualified positions:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement increases the maximum credit allowed under § 6–403(b)(1)(ii)1 of this title to the lesser of $5,125,000 or the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years; and</text> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement increases the maximum credit allowed under § 6–403(b)(1)(ii)1 of this title to the lesser of $5,500,000 or the total eligible project cost for the eligible economic development project, less the amount of the credit previously taken for the project in prior taxable years.</text> </level> </level> </section> <section article="gec" article_name="Economic Development" number="6-1005" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Economically disadvantaged individual”, “focus area employee”, and “qualified employee” have the meanings stated in § 10–702 of the Tax – General Article.</text> </level> <level label="3"> <text>“Enterprise zone” and “focus area” have the meanings stated in § 5–701 of this article.</text> </level> </level> <level label="b"> <text>For a qualified opportunity zone business that qualifies for an income tax credit for wages paid in an enterprise zone under § 10–702(c) and (d) of the Tax – General Article:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is:</text> <level label="i"> <text>up to $1,025 of the wages paid to each qualified employee; and</text> </level> <level label="ii"> <text>for wages paid to each qualified employee who is an economically disadvantaged individual, the credit allowed under § 10–702(c) and (d) is increased by 7.5% in each of the 3 taxable years in which the credit is claimed; and</text> </level> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is:</text> <level label="i"> <text>up to $1,200 of the wages paid to each qualified employee; and</text> </level> <level label="ii"> <text>for wages paid to each qualified employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 10% in each of the 3 taxable years in which the credit is claimed.</text> </level> </level> </level> <level label="c"> <text>For a qualified opportunity zone business that qualifies for an income tax credit for wages paid in a focus area under § 10–702(e) of the Tax – General Article:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is:</text> <level label="i"> <text>up to $1,540 of the wages paid to each focus area employee; and</text> </level> <level label="ii"> <text>for wages paid to each focus area employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 7.5% in each of the 3 taxable years in which the credit is claimed; and</text> </level> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is:</text> <level label="i"> <text>up to $1,750 of the wages paid to each focus area employee; and</text> </level> <level label="ii"> <text>for wages paid to each focus area employee who is an economically disadvantaged individual, the credit allowed under § 10–702(e) of the Tax – General Article is increased by 10% in each of the 3 taxable years in which the credit is claimed.</text> </level> </level> </level> <level label="d"> <text>The enhanced multipliers authorized under subsections (b)(1)(i) and (2)(i) and (c)(1)(i) and (2)(i) of this section are in substitution for and not in addition to the multipliers under § 10–702(e) of the Tax – General Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1006" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this section, “investment”, “qualified investor”, and “qualified Maryland biotechnology company” have the meanings stated in § 10–725 of the Tax – General Article.</text> </level> <level label="b"> <text>For a qualified opportunity fund that is a qualified investor in a qualified Maryland biotechnology company under § 10–725 of the Tax – General Article, if the qualified Maryland biotechnology company, on or after March 1, 2018, is newly established in or expands into an opportunity zone:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is 65% of the investment in a qualified Maryland biotechnology company in any county, not to exceed $575,000; and</text> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is 75% of the investment in the qualified Maryland biotechnology company in any county, not to exceed $750,000.</text> </level> </level> <level label="c"> <text>The enhanced tax credit percentages and maximums authorized under subsection (b) of this section are in substitution for and not in addition to the percentages and maximums under § 10–725(d) of the Tax – General Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1007" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this section, “investment”, “qualified investor”, and “qualified Maryland technology company” have the meanings stated in § 10–733 of the Tax – General Article.</text> </level> <level label="b"> <text>For a qualified opportunity fund that is a qualified investor in a qualified Maryland technology company under § 10–733 of the Tax – General Article, if the qualified Maryland technology company, on or after March 1, 2018, is newly established in or expands into an opportunity zone in a county other than Allegany County, Dorchester County, Garrett County, or Somerset County:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is 33% of the investment in a qualified Maryland technology company, not to exceed $300,000; and</text> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is 50% of the investment in the qualified Maryland technology company, not to exceed $500,000.</text> </level> </level> <level label="c"> <text>The enhanced tax credit percentages and maximums authorized under subsection (b) of this section are in substitution for and not in addition to the percentages and maximums under § 10–733(d) of the Tax – General Article.</text> </level> </section> <section article="gec" article_name="Economic Development" number="6-1008" title_number="6" title_name="Economic Development Tax Incentives" subtitle_number="10" subtitle_name="Opportunity Zone Enhancement Program"> <level label="a"> <text>In this section, “eligible project” and “qualified position” have the meanings stated in § 6–801 of this title.</text> </level> <level label="b"> <text>For a qualified opportunity zone business that qualifies for a More Jobs for Marylanders Program tax credit under § 10–741(b) of the Tax – General Article:</text> <level label="1"> <text>the Level 1 opportunity zone enhancement is equal to 6% of the total amount of wages paid for each qualified position at an eligible project; and</text> </level> <level label="2"> <text>the Level 2 opportunity zone enhancement is equal to 6.25% of the total amount of wages paid for each qualified position at an eligible project.</text> </level> </level> <level label="c"> <text>The enhanced tax credit percentages authorized under subsection (b) of this section are in substitution for and not in addition to the State employer withholding amount under § 10–741(b) of the Tax – General Article.</text> </level> </section>