Expedited Bill No. 5-10
Concerning: Economic Development - Biotechnology Credit – County Supplement
Revised: 3-10-10 Draft No. 2
Introduced: February 2, 2010
Enacted: March 16, 2010
Executive: March 26, 2010
Effective: March 26, 2010
Sunset Date: None
Ch. 9 , Laws of Mont. Co. 2010
For Montgomery County, Maryland
AN EXPEDITED ACT to:
(1) authorize the County to supplement the state biotechnology investment incentive tax credit; and
(2) generally amend the law governing County financial incentives for investment in certain businesses.
Montgomery County Code
Chapter 20, Finance
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from existing law by original bill. Double
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from existing law or the bill by amendment. *
* * Existing law unaffected by bill.
Boldface Heading or defined term.
Underlining Added to existing law by original bill.
[Single boldface brackets] Deleted from existing law by original bill.
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[[Double boldface brackets]] Deleted from existing law or the bill by amendment.
* * * Existing law unaffected by bill.
Sec. 1. Section 20-76A is inserted as follows:
20-76A. Biotechnology investment incentive tax credit supplement.
(a) The Director of Finance must pay, subject to appropriation, a Biotechnology Investment Incentive Tax Credit Supplement to each applicant who meets certain eligibility standards.
(b) An applicant, who need not be a County resident, is eligible to receive the Supplement if:
(1) the applicant has been designated as a qualified investor under state law and has received a final tax credit certificate for the Maryland biotechnology investment incentive tax credit for the year in which the Supplement is claimed; and
(2) the tax credit received by the applicant was generated by an investment in a qualified Maryland biotechnology company, as defined in state law, that has its headquarters and base of operations in the County.
(c) The County Executive, by regulations issued under Method (1), may impose other eligibility standards. However, those standards must not make any person ineligible to receive the Supplement who would be eligible under subsection (b).
(d) The Supplement paid to each recipient must equal 50% of any tax credit the recipient receives from the State biotechnology investment incentive tax credit program, or a lower percentage, set in the annual operating budget resolution, which reflects the relative proportions of the respective annual appropriations for the state tax credit and the County supplement.
(e) The Director must require each eligible person to submit an application for the Supplement and may take any other action necessary to administer the Supplement. The Executive may issue regulations under Method (1) to specify an application process and otherwise implement this Section.
(f) If the Comptroller of the Treasury agrees, the Director may arrange for the Comptroller to pay the Supplement on behalf of the County. To the extent that the Comptroller does not pay the supplement, the Director must pay it directly to each eligible applicant.
(g) A person who submits a false or fraudulent application, or withholds material information, to obtain a payment under this Section has committed a Class A violation. In addition, the person must repay the County for all amounts improperly paid and all accrued interest and penalties that would apply to those amounts as if they were overdue taxes. A person who violates this Section is liable for all court costs and expenses of the County in any civil action brought by the County to recover any payment, interest, or penalty. The County may collect any amount due, and otherwise enforce this Section, by any appropriate legal action.
(h) If all or part of the allowed state tax credit is recaptured under the applicable state law, the recipient must repay the County within 60 days the portion of any Supplement paid by the County that was based on the recaptured credit.
Sec. 2. Expedited Effective Date.
The Council declares that this Act is necessary for the immediate protection of the public interest. This Act takes effect on the date when it becomes law.