2013 Maryland Code
ECONOMIC DEVELOPMENT
§ 6-303 - Qualification; certification

§6-303.

(a) (1) The Secretary or the Secretary’s designee shall certify a person as a qualified business entity if the person meets the requirements of this section.

(2) A person may not be certified as a qualified business entity unless the person notifies the Department of its intent to seek certification before hiring any qualified employees to fill the qualified positions necessary to meet the requirements of subsection (b)(1) of this section.

(b) To be eligible for a tax credit under this subtitle, a person shall establish or expand a business facility in the State that:

(1) during any 24-month period creates at least:

(i) 60 qualified positions;

(ii) 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

(iii) 25 qualified positions if the business facility established or expanded is located in a State priority funding area; and

(2) is primarily engaged in:

(i) manufacturing or mining;

(ii) transportation or communications;

(iii) agriculture, forestry, or fishing;

(iv) research, development, or testing;

(v) biotechnology;

(vi) computer programming, information technology, or other computer-related services;

(vii) central services for a business entity engaged in financial services, real estate services, or insurance services;

(viii) the operation of central administrative offices;

(ix) the operation of a company headquarters other than the headquarters of a professional sports organization;

(x) the operation of a public utility;

(xi) warehousing;

(xii) business services, if the business facility established or expanded is located in a State priority funding area; or

(xiii) entertainment, recreation, cultural, or tourism-related activities in a multi-use facility located within a revitalization area if the facility:

1. generates a minimum of 1,000 new full-time equivalent filled positions in a 24-month period; and

2. is not primarily used by a professional sports franchise or for gaming.

(c) To be certified as a qualified business entity for a tax credit under this subtitle, a person shall submit to the Department an application that specifies:

(1) the effective date of the start-up or expansion;

(2) the number of full-time employees existing before the start-up or expansion and the payroll of the existing employees;

(3) the number of qualified positions created and qualified employees hired and the payroll of the new qualified employees; and

(4) any other information that the Department requires by regulation.

(d) When determining whether a business facility is engaged in a qualifying activity described in subsection (b)(2) of this section, the Department shall consider the definitions set forth in the North American Industry Classification System.

(e) The Department may require that any information provided under subsection (c) of this section be verified by an independent auditor that the qualified business entity selects.