New Jobs Tax Credit

Montgomery County offers a real and personal property tax credit for businesses meeting the following criteria:

1. Re-locate or expand into at least 5,000 square feet of newly constructed or previously unoccupied premises.
2. Employ at least 25 individuals in new permanent full-time positions, within a 24-month period in the new or expanded premises.

Qualifying businesses will receive a Montgomery County tax credit against real and personal property taxes for a period of six years. The tax credit per year equals the following percentages of the tax imposed on the assessment of the new or expanded premises: 52% during the 1^st two taxable years, 39% during the 3^rd and 4^th taxable years, and 26% in the final two taxable years.

In addition, a qualifying business will also receive a State of Maryland tax credit, which is applied against individual or corporate income tax, insurance premiums tax, or financial institution franchise tax. The State credit is equal to a percentage of the amount of property tax imposed on the assessment of the new or expanded premises as follows: 28% in the 1^st two taxable years, 21% during the 3^rd and 4^th taxable years, and 14% in the final two taxable years.

Enhanced New Jobs Tax Credit

An enhanced real and personal property tax credit is available for large businesses generating or creating major economic impacts in Montgomery County. The criteria for the enhanced tax credit are:

For businesses relocating to Montgomery County:

1. Purchase or lease (and relocate into) at least 250,000 square feet of newly constructed or previously unoccupied premises.
2. Employ at least 1,250 individuals in new permanent full-time positions, paying at least 150% of the federal minimum wage, at the new premises.

For business expanding within Montgomery County:

1. Purchase, lease, or build (and relocate or expand into) at least 250,000 square feet of newly constructed or previously unoccupied county premises.
2. Continue to employ at least 2,500 individuals in existing permanent full-time positions, paying at least 150% of the federal minimum wage.
3. Employ at least 500 individuals in new permanent full-time positions, paying at least 150% of the federal minimum wage and located in the new premises.

Qualifying businesses will receive a 12-year tax credit equal to 58.5% of the amount of the property tax imposed on the increase in assessment of:

1. The new or expanded premises.
2. Newly renovated real property improvements adjoining or otherwise neighboring the new or expanded premises.
3. The personal property located on the new or expanded premises, or adjoining renovations.

In addition, qualifying businesses will also receive a State of Maryland Tax Credit equal to 31.5% of the amount of County property tax imposed on the increase in assessment of the real and property. The credit will be granted for the first 12 taxable years after the business qualifies for the Enhanced New Jobs Tax Credit and the credit can apply towards individual state individual or corporate income tax, insurance premiums tax, or financial institution franchise tax.

Enterprise Zone Tax Credits

Businesses choosing to locate in either downtown Silver Spring or downtown Wheaton, Long Branch are eligible to take advantage of special tax credit incentives designed to spur the re-development of these state-defined "Enterprise Zones."

• Enterprise Zone Real Estate Property Tax Credit - Provides businesses that locate or expand in Downtown Silver Spring a ten-year property tax credit on newly constructed or renovated facilities. The credit applies to the taxes due on any increase in taxes from a higher assessed value on the property.
• Enterprise Zone Employment Tax Credits - Businesses creating new full-time jobs in Silver Spring, Wheaton, and Long Branch are eligible for a $1000 income tax credit per newly created job. In addition, businesses hiring economically disadvantaged employees to fill newly created positions in the enterprise zone are eligible for $6,000 income tax credit per new job over a three-year period.

Focus Area Tax Credits

Businesses locating in a focus area within Takoma Park/Long Branch enterprise zones may be eligible for the following tax credits:

• Real property tax credits - Ten-year, 80 percent credit against local real property taxes on a portion of real property improvements. (Credit does not decline in a focus area as it does with the standard benefit).

• Personal property tax credits - Ten-year, 80 percent credit against local personal property taxes on new investment in personal property within a focus area.

• Income tax credits - One- or three-year credit for wages paid to new employees. The general credit is a one-time $1,500 credit per new employee. For economically disadvantaged employees, the credit increases to a total of $9,000 per employee distributed over three years