Maryland Department of Business and Economic Development Section 5-1101
§ 5-1101.
(a) In this subtitle the following words have the meanings indicated.
(b) "Central financial, real estate, or insurance services" means the performance of central management or administrative functions for a business entity engaged in financial, real estate, or insurance services, such as general management, accounting, computer tabulating, data processing, purchasing, transportation or shipping, advertising, legal, financial, and research and development.
(c) (1) "Company headquarters" means a facility where the majority of a business entity's financial, personnel, legal, and planning functions are handled either on a regional or national basis.
(2) "Company headquarters" does not include the headquarters of a professional sports organization.
(d) "Credit year" means the taxable year in which a qualified business entity claims the credit allowed under this subtitle.
(e) "Full-time position" means a position requiring at least 840 hours of an employee's time during at least 24 weeks in a 6-month period.
(f) (1) "Qualified business entity" means a person conducting or operating a trade or business in Maryland who:
(i) Is engaged in an activity specified in § 5-1102(b)(2)(ii) of this subtitle;
(ii) During any 24-month period creates:
1. At least 60 qualified positions;
2. At least 30 qualified positions if the aggregate payroll for the qualified positions is greater than a threshold amount equal to the product of multiplying 60 times the State's average annual salary, as determined by the Department; or
3. At least 25 qualified positions if the business facility established or expanded by the business entity is located in a State priority funding area; and
(iii) Is certified by the Secretary under § 5-1102(b) of this subtitle as qualifying for the tax credit under this subtitle.
(2) For a person engaged in a business activity described in § 5-1102(b)(2)(ii)12 of this subtitle, "qualified business entity":
(i) Includes the persons owning or operating the multiuse facility in which the entertainment, recreation, cultural, or tourism-related activities are operated; and
(ii) Does not include any separate entity that leases retail space at the facility.
(g) "Qualified employee" means an employee filling a qualified position.
(h) (1) "Qualified position" means a position that:
(i) Is a full-time position and is of indefinite duration;
(ii) Pays at least 150% of the federal minimum wage;
(iii) Is located in Maryland;
(iv) Is newly created, as a result of the establishment or expansion of a business facility in a single location in the State; and
(v) Is filled.
(2) "Qualified position" does not include a position that is:
(i) Created when an employment function is shifted from an existing business facility of the business entity located in Maryland to another business facility of the same business entity if the position does not represent a net new job in the State;
(ii) Created through a change in ownership of a trade or business;
(iii) Created through a consolidation, merger, or restructuring of a business entity if the position does not represent a net new job in the State;
(iv) Created when an employment function is contractually shifted from an existing business entity located in the State to another business entity if the position does not represent a net new job in the State; or
(v) Filled for a period of less than 12 months.
(3) For a business entity engaged in a business activity described in § 5-1102(b)(2)(ii)12 of this subtitle, "qualified position" does not include any position other than a position engaged in:
(i) The operation of entertainment, recreation, cultural, or tourism-related activities for the multiuse facility in which the entertainment, recreation, cultural, or tourism-related activities are operated; or
(ii) Management, marketing, building maintenance, hotel services, and security for the facility.
(i) "Revitalization area" means:
(1) An area designated as an enterprise zone by the Secretary under § 5-402 of this title or by the United States government;
(2) An area designated as an empowerment zone by the United States government pursuant to 26 U.S.C. § 1391 et seq.; or
(3) An area designated as an eligible neighborhood for economic revitalization assistance under § 6-305 of the Housing and Community Development Article.
(j) "Secretary" means the Secretary of Business and Economic Development or the Secretary's designee.
(k) "State priority funding area" includes the following areas:
(1) An incorporated municipality;
(2) A designated neighborhood, as defined in § 6-301 of the Housing and Community Development Article;
(3) An enterprise zone as designated under § 5-402 of this title or by the United States government;
(4) Those areas of the State located between Interstate Highway 495 and the District of Columbia;
(5) Those areas of the State located between Interstate Highway 695 and Baltimore City;
(6) No more than one area in a county designated by the county as a priority funding area under § 5-7B-03(c) of the State Finance and Procurement Article; and
(7) That portion of the Port Land Use Development Zone, as defined in § 6-501(e) of the Transportation Article, that has been designated as an area appropriate for growth in the county comprehensive master plan.
