One tradition of Maryland politics with which people might be unfamiliar is that the governor holds multiple bill-signing ceremonies following the adjournment of General Assembly’s 90-day session, including one held the following morning after the final gavel sounds.
This year was no different, of course, as Governor Larry Hogan signed over 110 bills into law back on April 11, including one that will see manufacturers here in the Old Line State secure considerable tax breaks for creating new jobs.
Specifically, The More Jobs for Marylanders Act of 2017 calls for new manufacturers in “distressed counties” that create not just new products, but new jobs over the next ten years to be eligible for the following generous tax benefits:
- Sales tax refunds
- State property tax credits
- Filing fee relief
- A 5.75 percent credit against income tax for the wages paid (also available to certain existing manufacturers)
- Accelerated depreciation enabling manufacturers to write off capital purchases in 12 months
In exchange, manufacturers would be required to provide programs that enable employees to enhance job skills.
Experts indicate that what makes The More Jobs for Marylanders Act, which caps the combined sales tax and income breaks at $10 million per year statewide, so noteworthy is that it’s largely the product of an eleventh hour political compromise between the Republican Governor, and Democrats in the Senate and House.
This can be seen in the inclusion of work force developments alongside the tax breaks and the definition of “distressed counties.” Indeed, the original measure covered only Baltimore County and several counties on the Eastern Shore and in Western Maryland, but the final version expanded the definition to include three more counties chosen by the state Commerce Department.
It will be fascinating to see what transpires in the years ahead …
If you are a business owner with questions or concerns about a federal or state tax issue, consider speaking with a skilled legal professional who can provide answers and pursue solutions.