Maryland § 6-401

§ 6-401.

    (a)    In this subtitle the following words have the meanings indicated.

    (b)    “Credit year” means the taxable year in which a qualified business entity claims the tax credit authorized under this subtitle.

    (c)    “Eligible economic development project” means an economic development project that:

        (1)    establishes or expands a business facility within a Tier I county; and

        (2)    is approved for a project tax credit in accordance with this subtitle.

    (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.

        (2)    “Eligible project cost” includes:

            (i)    the cost of:

                1.    obligations for labor and payments made to contractors, subcontractors, builders, and suppliers;

                2.    acquiring land, rights in land, and costs incidental to acquiring land or rights in land;

                3.    contract bonds and insurance needed during the acquisition, construction, or installation of the project;

                4.    test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, supervision of construction, and other architectural and engineering services;

                5.    performing duties required by or consequent to the acquisition, construction, and installation of the project;

                6.    installing water, sewer, sewer treatment, gas, electricity, communications, railroads, and similar utilities; and

                7.    bond insurance, letters of credit, or other forms of credit enhancement or liquidity facilities;

            (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;

            (iii)    legal, accounting, financial, printing, recording, filing, and other fees and expenses incurred to finance the project; and

            (iv)    a qualified business entity’s cost to furnish and equip a new location for ordinary business functions, including:

                1.    the cost of computers, nonrecurring costs of fixed telecommunications equipment, furnishings, and office equipment; and

                2.    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.

    (e)    “Project tax credit” means a tax credit for eligible project costs allowed under § 6–403 of this subtitle.

    (f)    “Qualified business entity” means a person that:

        (1)    (i)    conducts or operates a trade or business in the State; or

            (ii)    operates in the State and is exempt from taxation under § 501(c)(3) or (4) of the Internal Revenue Code; and

        (2)    is certified in accordance with this subtitle as qualifying for a project tax credit under this subtitle.

    (g)    (1)    “Qualified position” means a position that:

            (i)    is a full–time position and is of indefinite duration;

            (ii)    pays at least 120% of the State minimum wage;

            (iii)    is in a Tier I county;

            (iv)    is newly created because a business facility begins or expands in one location in a Tier I county; 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 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;

            (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 is not a net new job in the State;

            (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

            (v)    filled for a period of less than 12 months.

    (h)    (1)    “Tier I county” means a county with:

            (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;

            (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

            (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.

        (2)    “Tier I county” includes a county that:

            (i)    no longer meets any of the criteria stated in paragraph (1) of this subsection; but

            (ii)    has met at least one of the criteria at some time during the preceding 24–month period.