§ 9-230. Property tax credits and enhanced property tax credits for business entities
West's Annotated Code of MarylandTax-PropertyEffective: January 2, 2022
Effective: January 2, 2022
MD Code, Tax - Property, § 9-230
§ 9-230. Property tax credits and enhanced property tax credits for business entities
(b)(1) The Mayor and City Council of Baltimore City or the governing body of a county or of a municipal corporation may enact legislation necessary to grant either property tax credits, enhanced property tax credits, or both types of property tax credits against the county or municipal corporation property tax imposed on real property owned or leased by business entities that meet the requirements specified for the applicable tax credit under this section and on personal property owned by business entities that meet the requirements specified under this section.
(2)(i) If a property tax credit is granted under paragraph (1) of this subsection, a business entity that meets the requirements for the property tax credit under this section and obtains certification from the county or municipal corporation may claim a State tax credit against the individual or corporate income tax, insurance premiums tax, or financial institution franchise tax as provided under subsection (c)(3) of this section.
(ii) If an enhanced property tax credit is granted under this section and a business entity and its affiliates meet the requirements for the enhanced property tax credit and obtain certification from the county or municipal corporation, the business entity or any of its affiliates may claim a State tax credit against the individual or corporate income tax, insurance premiums tax, or financial institution franchise tax as provided under subsection (d)(5) of this section.
(6) To qualify for a tax credit under this section, before it obtains the new or expanded premises or hires employees to fill the new permanent full-time positions at the new or expanded premises, a business entity shall provide written notification to the county or municipal corporation in which the new or expanded premises are located:
(7) If a business entity meets the requirements for a tax credit under this section, the county or municipal corporation shall certify to the Department and the Department of Commerce that the business entity has met the requirements for the tax credit for the taxable year that follows the date on which it met the requirements.
(c)(1) To qualify for a property tax credit under this subsection, a business entity shall:
(2) If a business entity meets the requirements of paragraph (1) of this subsection and subsection (b) of this section and of applicable local law adopted under subsection (b)(1) of this section, the county or municipal corporation shall compute the amount of the property tax credit granted under this subsection for new or expanded premises and the personal property located on those premises that may be claimed against the county or municipal corporation property taxes that would otherwise be due to equal a percentage of the amount of property tax imposed on the assessment of the new or expanded premises, as follows:
(3) On receipt of notification under subsection (b)(7) of this section that a business entity has been certified for a property tax credit under this subsection, the Department shall compute and certify to the Comptroller or, in the case of the insurance premiums tax, the Maryland Insurance Commissioner the amount of the State tax credit authorized under this subsection that may be claimed against the individual or corporate income tax, insurance premiums tax, or financial institution franchise tax that would otherwise be due to equal a percentage of the amount of property tax imposed on the assessment of the new or expanded premises, as follows:
(d)(1) For a business entity to qualify for an enhanced property tax credit under this subsection, the business entity, along with its affiliates, shall:
2. continue to employ at least 2,500 individuals in existing permanent full-time positions paying at least 150% of the federal minimum wage and located at premises in the State where the business entity, along with its affiliates, is primarily engaged in one or more of the industries listed in paragraph (2) of this subsection; and
2. employ a total of at least 1,100 individuals in full-time positions consisting of both full-time positions of indefinite duration and contract positions of definite duration lasting at least 12 months with an unlimited renewal option, and including at least 500 individuals in new permanent full-time positions, with all positions:
(4)(i) If a business entity meets the requirements of this subsection and subsection (b) of this section and of applicable local law adopted under subsection (b)(1) of this section, for each of the first 24 taxable years after it qualifies for the credit, a property tax credit may be claimed against the county or municipal corporation property taxes that would otherwise be due.
(5) On receipt of notification under subsection (b)(7) of this section that a business entity has been certified for an enhanced property tax credit under this subsection, the Department shall compute and certify to the Comptroller or, in the case of the insurance premiums tax, the Maryland Insurance Commissioner the amount of the State tax credit authorized under this subsection that may be claimed by the business entity or any of its affiliates against the individual or corporate income tax, insurance premiums tax, or financial institution franchise tax that would otherwise be due to equal 31.5% of the amount of property tax imposed on the increase in assessment of the real and personal property described in paragraph (4)(ii) of this subsection for each of the first 24 taxable years for which the credit is allowed.
(e) The same State tax credit cannot be applied more than once against different taxes by the same taxpayer.
(f) If the State tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the business entity for that taxable year, a business entity or its affiliates may apply the excess as a credit for succeeding taxable years until the earlier of:
(g) The Maryland Insurance Commissioner shall adopt regulations to provide for the computation, carryover, and recapture of the State tax credit under § 6-116 of the Insurance Article.
(h) The Department shall adopt regulations to provide for the computation, carryover, and recapture of the State tax credit under § 8-217 of the Tax--General Article.
(i) The Comptroller shall adopt regulations to provide for the computation, carryover, and recapture of the State tax credit under § 10-704.8 of the Tax--General Article.
(j) The lessor of real property eligible for property tax credits under this section shall reduce by the amount of the property tax credits computed under this section the amount of taxes for which the eligible business entity is contractually liable under the lease agreement.
(k) The governing body of the county or municipal corporation shall provide, by law, for:
(l) All credits claimed under this section for a taxable year shall be recaptured if, during the 3 taxable years succeeding the taxable year in which a credit was claimed:
(m) On October 1 of each year, each county and municipal corporation that has granted tax credits under this section shall report to the Department, the Department of Commerce, and the Comptroller:
(n)(1) After a business entity has complied with all the requirements provided in this section and in any applicable local law for a particular tax credit, the business entity shall be entitled to claim the credits for the term provided in this section.
Credits
Added by Acts 1997, c. 623, § 1, eff. Oct. 1, 1997; Acts 1997, c. 624, § 1, eff. Oct. 1, 1997. Renumbered from Tax-Property § 9-229 and amended by Acts 1997, c. 14, § 20, eff. April 8, 1997. Amended by Acts 1998, c. 21, § 1, eff. April 14, 1998; Acts 1998, c. 623, § 1, eff. Oct. 1, 1998; Acts 1999, c. 492, § 1, eff. July 1, 1999; Acts 1999, c. 510, § 1, eff. July 1, 1999; Acts 2000, c. 501, § 1, eff. July 1, 2000; Acts 2002, c. 538, § 1, eff. July 1, 2002; Acts 2006, c. 191, § 1, eff. July 1, 2006; Acts 2008, c. 307, § 1, eff. Oct. 1, 2008; Acts 2012, c. 66, § 6, eff. April 10, 2012; Acts 2012, c. 128, § 1, eff. July 1, 2012; Acts 2015, c. 22, § 5; Acts 2016, c. 8, § 5; Acts 2018, c. 350, § 3, eff. June 1, 2018; Acts 2019, c. 211, § 3, eff. July 1, 2019; Acts 2020, c. 628, § 1, eff. May 8, 2020.
MD Code, Tax - Property, § 9-230, MD TAX PROPERTY § 9-230
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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