Bill > SB91

This bill establishes an Income Tax Benefit Transfer Program administered by the Maryland Department of Commerce to help technology companies transfer unused tax benefits. Eligible technology companies must be Maryland-based, have been incorporated for at least 1-10 years (depending on company age), have fewer than 225 U.S. employees, and be engaged in innovative technology research or development. The program allows these companies to transfer unused net operating loss modifications or research and development tax credits to other Maryland taxpayers in exchange for at least 80% of the tax benefit's value. The total annual transfers are capped at $35 million, with individual companies limited to a lifetime maximum of $15 million in transferred benefits. Companies must use the transferred funds for business expenses like fixed assets, salaries, research, and working capital, and must maintain their Maryland headquarters for 5 years after receiving the funds. The Maryland Economic Development Commission will annually recommend eligible technology sectors, and the Department of Commerce will prioritize clean energy innovation applications. The program is designed to provide financial flexibility for growing technology companies and incentivize their continued operation in Maryland, with the transfers becoming effective for taxable years beginning after December 31, 2024.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0091?ys=2025RS