State Incentives

Maryland is Open for Business. To encourage private investment and job creation, the State offers an array of funding programs, investment incentives, and tax credits. A complete guide to the Maryland Department of Commerce's incentive programs can be found here -

 State Incentives Search Tool

*Below we highlight some of these grant and tax credit programs that are commonly applicable to Frederick businesses. This list and its overviews of eligibility/benefits/application are not comprehensive. For full program details, please visit the link provided.  

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Highlighted State Tax Credits and Grant Programs:

Enterprise Zone Tax Credit

  • Eligibility*: New and existing businesses located in designated Golden Mile area and with qualifying property improvements and/or job creation
  • Benefits: 
    • 10 year City/County tax credit based on increase in real property tax assessments (80% during the first 5 years, then decreasing 10% annually)
    • a one-time $1,000 state income tax credit for each qualified employee filling a new position
    • a three year state income tax credit for each qualified new economically disadvantaged employee ($3000 in Year One, $2000 in Year Two, $1000 in Year Three)
  • Application: To capture the property tax credit, capital projects must receive certification prior to the commencement of work. Income tax credits can be claimed within the year of the employee's hire. Contact the Department of Economic Development for application instructions
  • Full program details

Job Creation Tax Credit 

  • Eligibility*: the creation of a net 65 new Maryland jobs -- or 25 net new jobs in a Priority Funding Area, within a 24 month period and at a single location; qualified positions must be full-time and pay at least 120% of Maryland state minimum wage
  • Benefits: A State income tax credit of $3,000 per new job to the business that qualifies. If a business locates in a revitalization area (state enterprise zone, federal empowerment zone, or DHCD Sustainable Community), the credit increases to $5,000 per new job
  • Application: A declaration of intent is required - a business may not claim any employees hired prior to the business formally notifying Commerce of its intent to seek certification for the Job Creation Tax Credit. Contact the Department of Commerce, Office of Finance Programs at 410-767-4041 for more information 
  • Full program details 

Maryland Business Works Program 

  • Eligibility: in-demand small businesses (fewer than 500 employees) providing occupational specific, allowable training to full-time employees
  • Benefits: a dollar-to-dollar match for eligible training costs (with a $4,500 training cap funding level that may be awarded to a specific trainee, and with a $40,000 funding cap to a specific employer)
  • Application: Information and forms can be accessed online here. Contact the Department of Labor, Licensing & Regulation, Division of Workforce Development & Adult Learning at 410-767-2173. Proposals seeking retroactive funding will not be approved.
  • Full program details 

 Partnership for Workforce Quality – Grant

  • Eligibility*: Business must have a minimum of 10 full time employees and use funds for qualifying training initiatives with a minimum cost of $20,000
  • Benefits: Matching grant funds used to reimburse up to 50% of the costs of qualified projects
  • Application: Contact the Senior Business Development Representative for Frederick County – Tamar Osterman at 443-902-4487
  • Full program details

Hire Our Veterans - Tax Credit

  • Eligibility*: Employer must employ 50 or fewer full-time employees; eligible employees must have served in the active Armed Forces for at least 180 days (unless released from duty for a service-connected disability), left service under honorable circumstances, and be a Qualified Veteran for the purposes of the Federal Work Opportunity Tax Credit 
  • Benefits: an income tax credit equal to 30% of up to the first $6,000 of wages paid to a qualified veteran employee during the first year of employment (i.e. a maximum of $1,800 per qualified veteran employee). 
  • Application: Application materials are available on the Department of Commerce page
  • Full program details 

Arts and Entertainment District – Tax Credit

  • Eligibility*: Qualifying Arts & Entertainment enterprises located in the A&E District
  • Benefits:
    • Property tax credit (City & County) based on the increase in assessed valuation on a portion of commercial property renovated/constructed for a certified arts use
    • State income tax subtraction modification for qualifying artists for income derived from their in-district sales 
    • Exemption from the Admissions and Amusement Tax
  • Application
    • Eligible artists should submit a 502AE form with their annual state tax filing claim
    • Contact the Department of Economic Development for more information
  • Full program details

For full list, search here. 

*Above is a quick look at some of the State's grant and tax credit programs that are commonly applicable to Frederick businesses. This list and its overviews of eligibility/benefits/application are not comprehensive. For full program details, please visit the link provided.