Bill > HB1256

This bill establishes an Angel Investor Tax Credit in Maryland, allowing qualified investors to receive a credit against their state income tax for a portion of their investment in qualified Maryland companies. The credit is generally 33% of the investment, capped at $250,000, though it can be higher (50% up to $500,000) for investments in companies located in certain economically distressed counties. The Department of Commerce (referred to as "the Department") will manage this program through an online portal, providing information and processing applications. A "qualified investor" is an individual or entity investing at least $25,000 who files income taxes, and a "qualified Maryland company" is a business headquartered and operating in Maryland, meeting specific criteria like having fewer than 50 employees and not being publicly traded. Investors must make their investment within 30 days of receiving an initial tax credit certificate from the Department, and then provide proof of the investment. The bill also creates an Angel Investor Tax Credit Reserve Fund to manage the program's finances and specifies conditions under which the tax credit can be recaptured, such as if the investor sells their interest or the company ceases operations within two years of the credit being claimed. This program is intended to encourage investment in early-stage, innovative Maryland businesses and will be in effect for 10 years, starting with taxable years after December 31, 2025.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB1256?ys=2026RS