# Economic Development (GEC)

## Title 6. Economic Development Tax Incentives

### Subtitle 3. Job Creation Tax Credit

#### Section 6-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Credit year" means the taxable year in which a qualified business entity claims the credit allowed in accordance with Sec. 6-304(a) of this subtitle.

(c)

  (1) "Qualified business entity" means a person conducting or operating a trade or business in the State that is certified in accordance with Sec. 6-303 of this subtitle as qualifying for the tax credit under this subtitle.

  (2) For a person engaged in a business activity described in Sec. 6-303(b)(1)(ii)13 of this subtitle, "qualified business entity":

    (i) includes a person owning or operating the multi-use facility in which the entertainment, recreation, cultural, or tourism-related activities are operated; and

    (ii) does not include any separate entity that leases retail space at the facility.

(d)

  (1) "Qualified position" means:

    (i) if the position is filled before October 1, 2021, a position that:

      (1) is full-time and of indefinite duration;

      (2) pays at least 120% of the State minimum wage;

      (3) is located in the State;

      (4) is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and

      (5) is filled; and

    (ii) if the position is filled on or after October 1, 2021, a position that:

      (1) is full-time and of indefinite duration;

      (2) pays at least:

      (A) for an employee classification for which there is a prevailing wage rate, as defined under Sec. 17-201 of the State Finance and Procurement Article, the prevailing wage; or

      (B) for any other employee classification, 150% of the State minimum wage;

      (3) is located in the State;

      (4) provides career advancement training;

      (5) affords the employee the right to collectively bargain for wages and benefits;

      (6) provides paid leave;

      (7) is considered covered employment for purposes of unemployment insurance benefits in accordance with Title 8 of the Labor and Employment Article;

      (8) entitles the employee to workers' compensation benefits in accordance with Title 9 of the Labor and Employment Article;

      (9) offers employer-provided health insurance benefits with monthly premiums that do not exceed 8.5% of the employee's net monthly earnings;

      (10) offers retirement benefits;

      (11) is newly created as a result of the establishment or expansion of a business facility in a single location in the State; and

      (12) is filled.

  (2) "Qualified position" does not include a position that is:

    (i) created when an employment function is shifted from an existing business facility of a business entity in the State to another business facility of the same business entity if the position is not a net new job in the State;

    (ii) created through a change in ownership of a trade or business;

    (iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;

    (iv) created when an employment function is contractually shifted from an existing business entity to another business entity in the State if the position is not a net new job in the State; or

    (v) filled for a period of less than 12 months.

  (3) For a person engaged in a business activity described in Sec. 6-303(b)(1)(ii)13 of this subtitle, "qualified position" does not include any position other than a position engaged in:

    (i) the operation of entertainment, recreation, cultural, or tourism-related activities within the multi-use facility; or

    (ii) management, marketing, building maintenance, hotel services, or security for the multi-use facility.

(e) "Qualified veteran employee" means an individual who:

  (1) is a veteran; and

  (2) is a qualified veteran as defined under Sec. 51(d)(3)(A) of the Internal Revenue Code for purposes of the federal Work Opportunity Tax Credit.

(f) "Revitalization area" means:

  (1) an enterprise zone designated by the Secretary under Sec. 5-704 of this article;

  (2) an enterprise zone designated by the United States government under 42 U.S.C. Sec.Sec. 11501 through 11505;

  (3) an empowerment zone or enterprise community designated by the United States government under 26 U.S.C. Sec.Sec. 1391 through 1397F;

  (4) a sustainable community, as defined in Sec. 6-301 of the Housing and Community Development Article; or

  (5) a Tier I county.

(g) "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.

(h) "State priority funding area" means:

  (1) a municipal corporation;

  (2) Baltimore City;

  (3) a sustainable community, as defined in Sec. 6-301 of the Housing and Community Development Article;

  (4) an enterprise zone designated by the Secretary under Sec. 5-704 of this article;

  (5) an enterprise zone designated by the United States government under 42 U.S.C. Sec.Sec. 11501 through 11505;

  (6) those areas of the State located between Interstate Highway 495 and the District of Columbia;

  (7) those areas of the State located between Interstate Highway 695 and Baltimore City;

  (8) any area in a county designated by the county as a priority funding area under Sec. 5-7B-03(c) of the State Finance and Procurement Article;

  (9) that portion of the Port Land Use Development Zone, as defined in Sec. 6-501 of the Transportation Article, that has been designated as an area appropriate for growth in a county comprehensive master plan; and

  (10) a qualified opportunity zone designated under Sec. 1400Z-1 of the Internal Revenue Code in Allegany County, Garrett County, Somerset County, or Wicomico County.

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Md. Code Ann., Econ. Dev. (as displayed at mgaleg.maryland.gov, October 16, 2026)