St. Mary’s County offers this incentive to businesses here that create at least ten full-time jobs locally. The incentive is in the form of real and personal property tax credits that will be granted for up to ten years, depending upon the number of jobs created.
In order to qualify for the incentive, firms must be:
The following industries are targeted:
In addition to the above, the County will consider offering the incentive to:
How the Tax Credit is Calculated
The credit will be provided for a number of years based on the number of jobs created:
|Number of Jobs||Created Number of Years Credit Will Be Provided||Property Tax Credit Amount Per Year||Total Credit to Company of Life of Program|
|10 – 15||5||$5,000||$25,000|
|16 – 25||8||$8,000||$64,000|
|26 or more||10||$10,000||$100,000|
The property tax credit is based on two components:
Property Tax Credit on Existing Structures
If a business in a targeted industry creates a minimum of ten new jobs and they are not constructing a new building or are not purchasing new taxable capital equipment, they are eligible for a tax credit.
This credit is also available to firms that own or lease their building. If the firm leases space, the credit will be provided to the building owner and the County will enter into an agreement with the building owner to pass the savings on to the business leasing the property that is creating the new jobs.
Property Tax Credit on New Structures
If a business will have a new capital investment, an additional property tax credit will be provided for that investment equal to a 50% reduction on the County property taxes due for the new investment for the number of years as determined by the quantity of jobs created.
Additional Policy Provisions
Note: Full time job equivalence will also be accepted.
Note: Awarded incentives are subject to the prevailing laws and regulations of the United States and the State of Maryland. Neither the County nor any of its employees makes any representation as to incentives, their legality or the tax consequences thereof. The potential applicant is encouraged to seek its own legal and tax counsel in all regards.
Note: The Commissioners of St. Mary’s County will consider requests for incentives in the Town of Leonardtown based on a recommendation from the Leonardtown Town Manager