SWED   Salisbury -Wicomico                                                              

        Est. 1968       Economic Development, Inc.

                                                 © swed 2007 

Incentives 

Enterprise Zone Tax Credits   Enterprise Zone Map (Salisbury.pdf)     (Fruitland.pdf)

Wicomico County is home to two enterprise zones that offer real property and state income tax credits to qualified businesses.  Salisbury's zone totals some 2,141 acres with full municipal services and covers the Northwood Industrial Park and the Downtown Salisbury area.  The City of Fruitland recently established a 110 acre enterprise zone.  To be eligible, a business needs to create two new jobs or show a minimum capital investment of $50,000.  Advantages of an enterprise zone location include:

 - Property Tax Credits:  10 year credit against local property taxes on a portion of real

   property improvements.  Credit is 80% the first five years, and decreases 10% annually

   thereafter to 30% in the tenth and final year.

 - State Income Tax Credits:  One to three year credits for wages paid to new employees in

   the zone.  The general credit is a one-time $1,000 credit per new worker.  For economically

   disadvantaged employees, the credit increases to a total of $6,000 per worker distributed

   over three years.   

Example of Tax Credits

Enterprise Zone Benefits (pdf)

Salisbury/Wicomico Zone Application (pdf)

Top

Job Creation Tax Credits

Maryland's Job Creation Tax Credit program provides income tax credits to businesses that create new jobs to encourage them to expand or relocate in Maryland.  In most cases, the credit is 2.5 percent of annual wages for all newly created, full-time jobs, subject to a limit of $1,000 per new job.  In a state enterprise zone, a federal empowerment zone, or a Maryland Department of Housing and Community Development designated neighborhood, the credit is increased to five percent of annual wages for all newly created full-time jobs, subject to a limit of $1,500 per new job.  The credit earned by a qualified business entity may not exceed $1 million per credit year.

If the credit is more than the tax liability the unused credit may be carried forward for five years following the credit year.  The credit may be recaptured if the business experiences job losses.

Qualifying for the Credit

• Declaration of Intent: A business may not claim any employees hired prior to the business notifying the Department of Business and Economic Development (DBED) of its intent to seek certification for the Job Creation Tax Credit.
• Certification: A business must be certified as a qualified business entity eligible for the tax credit. To be certified, a business must submit applications to DBED.
• Job Creation Minimums: The business must create 60 new, full-time jobs at the expanding or new facility during a 24-month period. In designated “Priority Funding Areas” (defined below), the minimum is 25.  Outside Priority Funding Areas the requirement may be reduced to as few as 30 new jobs if the aggregate annual salary of the new employees exceeds $2.66 million (for 2007). The positions must be filled for 12 months.
• The facility must be engaged in an eligible activity.
• The expansion or establishment of a business must be at a single location in the state. A single firm may have more than one eligible location, provided that each is certified and meets the requirements of the statute.

Eligible Business Activities
To qualify a business must be primarily engaged in:

• Manufacturing
• Transportation or communications
• Agriculture, forestry, fishing or mining
• A public utility
• Warehousing
• Research, development, or testing
• Biotechnology
• Computer programming, data processing or other computer related services
• Central financial, real estate or insurance services
• The operation of central administrative offices or a company headquarters
• Business services firms (only located in a "Priority Funding Area")

A business may also be engaged in the operation of entertainment, recreation, cultural or tourism related activities in a multi-use facility located within a revitalization area if the facility generates a minimum of 1,000 new full-time equivalent filled positions in a 2-year period.   Top

Manufacturing Machinery and Equipment Exemptions

Maryland does not impose a personal property tax on business.  Wicomico County, upon application and approval, exempts manufacturing equipment and machinery from personal property tax.    Top 

Sales Tax Exemptions

Wicomico County does not impose a sales tax.  Maryland exempts sales tax from the following items:

 - Sales of capital manufacturing machinery and equipment, including equipment used for

   testing finished products, assembling, processing or refining, in the generation of

   electricity, or used to produce or repair production equipment.

- Sales of tangible personal property consumed directly in manufacturing, testing of finished

   products, assembling, processing or refining, or in the generation of electricity, if

   consumed within one year after it is first used in a manufacturing process.

- Sales of fuels used in manufacturing, except those used to cool, heat, light the

   manufacturing facility.  All fuels through a particular meter are exempt if more than half are

   used directly in manufacturing. 

- Sales of equipment or materials used or consumed in research and development.

- Sales of computer programs reproduced for sale or incorporated in whole or in part into

   another computer program intended for sale.

- Sales of customized computer software.    Top 

Brownfields

The Voluntary Cleanup & Brownfields programs help businesses clean up contaminated industrial sites and redevelop them for commercial enterprise by providing liability limitations and economic incentives.  The Maryland Department of the Environment administers the Voluntary Cleanup Program, and the Maryland Department of Business and Economic Development administers the Brownfield Revitalization Incentive Program.  To enter a site in the Voluntary Cleanup Program, contact the Department of the Environment and request an application.  Once the application for the Voluntary Cleanup Program has been submitted, you can apply for financial assistance and tax credits.

          : Information - 410-537-3493

          : Application - 410-767-6353    Top 

Training and Recruitment

One key to maintaining a competitive business climate in Maryland is a well-trained workforce.  Through Maryland's Division of Regional Development, you will find an array or workforce training programs and support for businesses.  

 - Partnership for Workforce Quality: Financial assistance through the PWQ's individual

   company grant program.  The Partnership provides grants and support services targeted

   to help small and mid-sized manufacturing and technology companies (500 or less

   employees).  It also provides matching grants to manufacturing and technology consortia 

   programs to make the work of building high-performance companies more affordable

   and effective.

          : The Maryland ISO Consortium Program - 410-767-0542

          : The Maryland World Class Manufacturing Consortium - 410-767-4802

          : The Software Industry Consortium - 410-767-0523 

   For qualifying companies that make a commitment to their training goals,

   PWQ will reimburse up to 50% of the direct costs related to the training projects.  The

   training providers are selected by the company, and Maryland also assists employers with

   recruitment and screening of employees and maintains a state and nationwide database

   of potential employees.  The objectives of the program are:

          : To improve business competitiveness and worker productivity

          : To upgrade employee skills for new technologies and production processes

          : To promote employment stability

   With businesses selecting their training providers, successful programs have been delivered

   by:

          : In-house instructors from participating companies

          : Wor-Wic Community College

          : Salisbury University

          : Private consultants

          : Product manufacturers and vendors

 - Maryland Industrial Training Program: Provides reimbursement grants for the development

   and training of new employees in firms relocating or expanding their workforce in

   Maryland.  MITP reimburses companies for eligible costs associated with training programs

   customized to the work process.  The level of funding is negotiated between the

   company and Maryland Department of Business and Economic Development with specific

   cost sharing items spelled out in a training grant agreement.

 - Maryland Job Service: Recruitment and job training assistance through the Maryland Job 

   Service and local employment training agencies provide free recruitment assistance.  They

   also perform client screening for all job creation and hiring tax credits available from the

   State and Federal government.

          : Maryland Job Service CareerNet One-Stop Center - 410-767-2173

          : Wicomico County One Stop Job Market - 410-341-6515

          : Lower Shore Workforce Alliance - 410-632-3300    Top 

State Business Tax Credits

Businesses in Maryland may be able to take advantage of several tax credits.  Below are links to each of the tax credits for which Maryland businesses may be eligible.  You may view the .pdf guide to business tax credits here, or order a free copy here.

Arts & Entertainment District

An Arts and Entertainment District is a geographically designated area in which a high concentration of arts and entertainment facilities serve as an anchor attraction. The intent of the District is to stimulate neighborhood revitalization, improve the attractiveness and safety of areas, stimulate business activity (particularly in the evenings and on weekends), attract residents and visitors and build the tax base.

The tax incentives available upon the designated Arts and Entertainment District include: an income tax subtraction modification for qualifying residing artists; a property tax credit; and an exemption from the Admissions and Amusement Tax.

For more information, contact Deborah Stam, Director of Community Development, City of Salisbury at 410-334-3031, or visit www.ci.salisbury.md.us.

One Plaza East, Suite 501

P.O. Box 4700 

Salisbury, Maryland  21801 

410-749-1251   fax: 410-749-1252

info@swed.org

This site sponsored by