{"data":{"id":"us-md/md.-code-economic-development-6-401","jurisdiction":"us-md","citation":"Md. Code, Economic Development § 6–401","heading":"","body":"(a) In this subtitle the following words have the meanings indicated.\n(b) “Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle.\n(c) “Eligible economic development project” means an economic development project that:\n(1) establishes or expands a business facility within a Tier I county; and\n(2) is approved for a project tax credit in accordance with this subtitle.\n(d) (1) “Eligible project cost” means the cost and expense a qualified business entity incurs to acquire, construct, rehabilitate, install, or equip an eligible economic development project.\n(2) “Eligible project cost” includes:\n(i) the cost of:\n1. obligations for labor and payments made to contractors, subcontractors, builders, and suppliers;\n2. acquiring land, rights in land, and costs incidental to acquiring land or rights in land;\n3. contract bonds and insurance needed during the acquisition, construction, or installation of the project;\n4. test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services;\n5. performing duties required by or consequent to the acquisition, construction, and installation of the project;\n6. installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities; and\n7. bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities;\n(ii) the interest cost before and during the acquisition, construction, installation, and equipping of the project, and for up to 2 years after project completion;\n(iii) legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project; and\n(iv) a qualified business entity’s cost to furnish and equip a new location for ordinary business functions, including:\n1. the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment; and\n2. expenditures for moving costs, separation costs, and other costs directly related to moving from outside of the State to a location in a Tier I county.\n(e) “Project tax credit” means a tax credit for eligible project costs allowed under § 6–403 of this subtitle.\n(f) “Qualified business entity” means a person that:\n(1) (i) conducts or operates a trade or business in the State; or\n(ii) operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and\n(2) is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle.\n(g) (1) “Qualified position” means a position that:\n(i) is a full–time position and is of indefinite duration;\n(ii) pays at least 120% of the State minimum wage;\n(iii) is in a Tier I county;\n(iv) is newly created because a business facility begins or expands in one location in a Tier I county; and\n(v) is filled.\n(2) “Qualified position” does not include a position that is:\n(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;\n(ii) created through a change in ownership of a trade or business;\n(iii) created through a consolidation, merger, or restructuring of a business entity if the position is not a net new job in the State;\n(iv) created when an employment function is contractually shifted from an existing business entity in the State to another business entity if the position is not a net new job in the State; or\n(v) filled for a period of less than 12 months.\n(h) (1) “Tier I county” means a county with:\n(i) an average rate of unemployment for the most recent 24–month period for which data are available that exceeds 150% of the average rate of unemployment for the State during that period;\n(ii) an average rate of unemployment for the most recent 24–month period for which data are available that exceeds the average rate of unemployment for the State by at least 2 percentage points; or\n(iii) a median household income for the most recent 24–month period for which data are available that is equal to or less than 75% of the median household income for the State during that period.\n(2) “Tier I county” includes a county that:\n(i) no longer meets any of the criteria stated in paragraph (1) of this subsection; but\n(ii) has met at least one of the criteria at some time during the preceding 24–month period.","path":["Article - Economic Development"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gec\u0026section=6-401","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:57:28Z","sha256":"cdc0383e92fdc7ea5f42e6d74d0e77910696a238fea377d2035a9c73ab4e30bf","source_id":"us-md","stale":false,"prev":"us-md/md.-code-economic-development-6-309","next":"us-md/md.-code-economic-development-6-402"},"notice":"GroundRules: Original legal text. Not legal advice."}