Tax Incentives & Financing
Money Matters
A plethora of federal, state, regional, and local incentive programs await new and expanding businesses in St. Mary’s County. At both the state and local levels, there are many in study specific incentive programs, particularly for targeted industry clusters within the county.
Our goal is to provide as many applicable tools as possible for our existing industries and new industries so we may continue to soar.
Cyber Security/Defense
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Buy Maryland Cybersecurity (BMC) Tax Credit
Provides an income tax credit of 50% of the purchase price for Maryland companies with 50 or fewer employees that purchase cybersecurity goods, products or services from Qualified Maryland Cybersecurity Sellers (QMCS). -
Cybersecurity Investment Incentive Tax Credit
Provides a refundable income tax credit to qualified investors who invest in a Qualified Maryland Cybersecurity Company (QMCC). -
Maryland Defense Cybersecurity Assistance Program (DCAP) Grant
DCAP provides funding and assistance for defense contractors to comply with the DFARS and NIST 800-171 Standards for Cybersecurity. -
Maryland Defense Diversification Assistance Program (MDDA)
Provides training and services to help eligible defense-dependent companies diversify their businesses and find new types of revenue streams. -
Employer Security Clearances Costs (ESCC) Tax Credit
Provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs) and first-year leasing costs for small businesses doing security-based contract work.
Technology
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Maryland Technology Internship Program (MTIP)
Helps Maryland retain top talent by offering financial assistance to technology-based businesses, as well as state and local agencies, to hire more interns. -
More Jobs for Marylanders - Manufacturing Tax Credit
Provides new and existing manufacturers with tax incentives tied to job creation for a 10-year period, including a refundable income tax credit, and encourages additional investment in new equipment through accelerated and bonus depreciation. -
Partnership for Workforce Quality (PWQ)
Provides matching training grants and support services targeted to improve the competitive position of small and mid-sized manufacturing and technology companies. -
TEDCO Seed Investment Fund
Supports small, seed-stage, for-profit Maryland companies in their effort to develop and commercialize new technology-based products. -
UM Maryland Industrial Partnerships (MIPS) Program Tech Transfer
Provides funding, matched by participating companies, for university-based research projects that help companies develop new products.
Research
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Maryland E-Nnovation Initiative Fund (MEIF)
Offers a state match to private funds raised in support of endowed chairs at Maryland's nonprofit institutions of higher education. Under the fund, $8.5 million will be appropriated by the Governor annually from fiscal 2016 through 2021. -
Maryland Momentum Fund
Funds for investing in promising early stage companies associated with the University System of Maryland (USM). Maryland-based companies that are seeking equity financing or debt financing that is convertible into equity may apply. -
Research and Development Tax Credit Tax Credit
Businesses that have qualified R&D expenditures in Maryland may qualify for two state income tax credits, the Basic R&D Tax Credit and the Growth R&D Tax Credit.
Small Business
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Lexington Park Façade and Streetscape Improvement Grant
Reimburses a portion of the investments by commercial property and/or business owners in Lexington Park, who complete projects that rehabilitate buildings, storefronts, and/or the streetscapes located adjacent to buildings and businesses. -
ADVANCE Maryland
Economic gardening program for second-stage entrepreneurs that offers businesses critical strategic information customized to their needs. -
ExportMD Program
Helps to offset some of the costs of marketing internationally for Maryland's small and mid-sized companies, providing up to $5,000 in reimbursement for expenses associated with an international marketing project. -
Maryland Economic Adjustment Fund (MEAF)
Assists business entities in the state with modernization of manufacturing operations, development of commercial applications for technology, and exploring and entering new markets. -
Maryland Momentum Fund
Funds for investing in promising early stage companies associated with the University System of Maryland (USM). Maryland-based companies that are seeking equity financing or debt financing that is convertible into equity may apply. -
Maryland Small Business Development Fund Authority (MSBDFA)
Assists small businesses unable to obtain adequate business financing on reasonable terms through normal financing channels. -
NIH Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Program
Federal funding for early stage U.S.-based small businesses creating innovative technologies to improve health. -
Small Business Relief Tax Credit
Refundable tax credit available to small businesses that provide their employees with paid sick and safe leave. -
Small, Minority and Women-Owned Business Account- Video Lottery Terminal Fund (VLT)
Proceeds from video lottery terminals (slots) provide financing to qualifying small, minority and women-owned businesses located in targeted areas surrounding six Maryland casinos. -
State Small Business Credit Initiative (SSBCI)
Provides direct funding for state credit enhancement programs. These funds must target an average borrower size of 500 employees or less and loans averaging $5 million. -
TEDCO Seed Investment Fund
Supports small, seed-stage, for-profit Maryland companies in their effort to develop and commercialize new technology-based products.
Veterans
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Hire Our Veterans Tax Credit
Provides a State income tax credit to small businesses for hiring qualified veterans based on wages paid to those veteran employees. -
Maryland Defense Diversification Assistance Program (MDDA)
Provides training and services to help eligible defense-dependent companies diversify their businesses and find new types of revenue streams. -
Military Personnel and Veteran-Owned Small Business Loan Program
No interest loans of up to $50,000 for businesses owned by military reservists, veterans, National Guard personnel and for small businesses that employ or are owned by such persons.
Agricultural
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Maryland Agriculture & Resource-Based Industry Development Corporation (MARBIDCO)
Helps Maryland's (typically small and family-owned) farm, forestry, and seafood businesses to prosper through the provision of targeted financial and other services that helps retain existing resource-based industry production and commerce, promote rural entrepreneurship, and nurture emerging or expanding agricultural enterprises. -
Maryland Resource-Based Industry Financing Fund Loan (MRBIFF)
Offers low-interest loans to established Agricultural/Resource-Based Industry firms for the purchase of land and capital equipment for production and processing activities, and environmental or water-quality enhancement projects. -
Maryland Value Added Producer Matching Grant Program
Makes grants available to those pursuing obtaining financial support from the USDA's Value Added Producer Grants Program. -
Maryland Wineries and Vineyards Tax Credit Tax Credit
Provides an income tax credit for qualified capital expenses related to a Maryland winery or vineyard. -
Maryland Vineyard Planting Loan Fund (MVPLF)
Helps meet the unique financing needs of Maryland's rural landowners wanting to plant vineyards and develop wineries. -
U.S. Department of Agriculture (USDA) Programs and Services for Businesses
USDA provides funding opportunities for rural small businesses through loans, loan guarantees and grants. -
Rural Business Energy Efficiency Improvement Loan Fund
Loans for energy efficiency projects undertaken by food and fiber producers and processors implementing the recommendations of a third-party energy auditor. -
Rural Business Equipment and Working Capital Loan Fund
Offers low-interest loans to established Agricultural/Resource-Based Industry firms and producers for working capital and equipment purchases. -
Southern Maryland Agricultural Development Commission (SMADC)
Support farms and the future of agriculture in the Southern region through farmland preservation, extensive support for regional farmers, and resources to help consumers find the farms they need.
Additional Funding Sources
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Advantage Maryland (also known as MEDAAF)
Funds grants, loans and investments to support economic development initiatives in priority funding areas of the state. Uses include business attraction and retention, infrastructure support, brownfield redevelopment, revolving loan funds and local strategic planning. -
Maryland Industrial Development Financing Authority (MIDFA)
Encourages private sector investments with insurance, and the issuance of tax-exempt and taxable revenue bonds for projects located in Priority Funding Areas. Uses include land acquisition, building acquisition, construction costs and more. -
Opportunity Zone Tax Credit
Nationwide program that provides federal tax incentives for investment in distressed communities over the next 10 years.
Quick Resource Links/Downloads:
- Opportunity Zones
- Maryland Department of Commerce
- New and Expanding Business Tax Credit
- TEDCO
- Southern Maryland Agricultural Development Commission (SMADC)
- Maryland Agriculture & Resource - Based Industry Development Corporation (MARBIDCO)
- Property Tax Challenge
- Lexington Park Façade Improvement Grant
Tax Rates
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Corporate Income Tax (FY19)None | 8.25%Base – federal taxable income
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Personal Income Tax (FY19)3.2% | 2.0%-5.75%*Base – federal adjusted gross income *Graduated rate peaking at 5.75% on taxable income over $300,000
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Sales & Use Tax (FY19)None | 6.0%Exempt – sales for resale; manufacturer’s purchase of raw materials; manufacturing machinery and equipment; purchases of materials and equipment used in R&D and testing of finished products; purchases of computer programs for reproduction or incorporation into another computer program for resale
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Real Property Tax (FY19)$0.8478 | $0.112Effective rate per $100 of assessed value In an incorporated area a municipal rate will also apply
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Business Personal Property Tax (FY19)$2.1195 | noneRate per $100 of depreciated value Exempt – manufacturing and R&D machinery, equipment, materials and supplies; manufacturing, R&D and warehousing inventory
Contact Us:
Lee Greely
Economic Development Specialist
St. Mary's County Department of Economic Development
Office: 301-475-4200 x71401
Mobile: 240-538-2744
Lee.Greely@stmaryscountymd.gov
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St. Mary's County Department of Economic Development
23115 Leonard Hall Drive, Leonardtown, MD 20650
Email: ded@stmaryscountymd.gov
301-475-4200, ext 1400
FAX: 301-475-4414