Bill > SB826

This bill establishes an Angel Investor Tax Credit to encourage investment in Maryland companies, particularly those involved in emergent technologies like artificial intelligence, quantum computing, or cybersecurity. Qualified investors, individuals or entities who invest at least $25,000 in a "qualified Maryland company" (a business with its headquarters and base of operations in Maryland, operating for less than 7 years, with less than $2 million in prior qualified investor funding, and fewer than 25 employees, among other criteria), can receive a tax credit equal to 25% of their investment, up to a maximum of $1,000,000. The bill outlines specific requirements for both investors and companies to qualify, including application processes and documentation. Investments must be made within 30 days of receiving an initial tax credit certificate from the Department of Commerce, and proof of investment must be submitted within 10 days of making it. The bill also creates an "Angel Investor Tax Credit Reserve Fund" to finance these credits, with a mandated annual appropriation of at least $25,000,000. Provisions are included for recapturing the tax credit if the investment is sold, the company ceases operations in Maryland, or the company fails to be properly organized within four months of receiving the investment. The tax credit program is set to expire on June 30, 2030, and will apply to taxable years beginning after December 31, 2025, and before January 1, 2030.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0826?ys=2026RS