Bill No.
25-13
Concerning: Economic Development -
Cybersecurity Credit -
County
Supplement
Revised:
6/26/2013
Draft No.
Introduced:
September 10, 2013
Enacted:
October 1, 2013
Executive:
October 4, 2013
Effective:
January 3,2014
Sunset Date:
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Ch.
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Laws of Mont. Co.
2013
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Councilmembers Riemer, Floreen, and Leventhal
AN
ACT to:
(1)
(2)
authorize the County to supplement the state cybersecurity investment incentive tax
credit; and
generally amend the law governing County financial incentives for investment in
certain businesses.
By amending
Montgomery County Code
Chapter 20, Finance
Section 20-76D
Boldface
Underlining
[Single boldface brackets]
Double undedining
[[Double boldface bracketsD
* * *
Heading or defined term.
Added to existing law by original bill.
Deletedfrom existing law
by
original
bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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BILL
No. 25-13
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Sec. 1. Section 20-76D is added as follows:
20-76D. Cybersecurity Investment Incentive Tax Credit Supplement.
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The Director of Finance must
QIDC,.
subject to appropriation, a
Cybersecurity Investment Incentive Tax Credit Supplement to each
Cybersecurity Company who meets certain eligibility standards.
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®
A Cybersecurity Company is eligible to receive the Supplement if:
ill
the Company has been designated as
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qualified Cybersecurity
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Company under state law and has received
final
tax
credit
certificate for the Maryland cybersecurity investment incentive
tax credit for the preceding calendar year; and
ill
the
tax
credit received
by
the Cybersecurity Company was
generated
by
an investment in
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qualified Maryland cybersecurity
company, as defined in state law, that has its headquarters and
base of operations in the County.
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The County Executive,
by
regulations issued under Method
ill
may
impose other eligibility standards. However, those standards must not
make any Cybersecurity Company ineligible to receive the Supplement
who would be eligible under subsection (Q1
@
ill
The Supplement paid to each eligible Cybersecurity Company
must equal the product of:
(A)
the amount of the credit the Company received under the
State Cybersecurity Investment Tax Credit Program,
divided
by
the total amount of credits all Montgomery
County cybersecurity companies received under the State
Cybersecurity Investment Tax Credit Program during the
preceding calendar year; and
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BILL No. 25-13
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ill)
the total amount of funds appropriated to the Supplement
Program for that fiscal year.
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m
The Supplement paid to any Cybersecurity Company must not
exceed:
CA)
50% of the State tax credit that the Company receives from
the Maryland Cybersecurity Investment Tax Credit
Program in the preceding calendar year; or
ill)
15% of the total annual appropriation for the Supplement
program.
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ill
The Director of Economic Development must request from the
Comptroller of the Treasury and Department of Business and Economic
Development,
Qy
April 30 of each year,
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list of each Cybersecurity
Company, headquartered and based in Montgomery County that was
issued
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[mal credit certificate
Qy
the State during the preceding
calendar year. The Executive may issue regulations under Method
to implement this Section.
ill
ill
If the Comptroller of the Treasury
~ees,
the Director of Finance may
arrange for the Comptroller to
IlliY
the Supplement on behalf of the
County.
To the extent that the Comptroller does not
IlliY
the
supplement, the Director must
IlliY
the supplement within 60 days after
receiving this list to each qualified Cybersecurity Company that was
issued
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[mal credit certificate from the State.
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(g)
A Cybersecurity Company who submits
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false or fraudulent
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application, or withholds material information, to obtain
under this Section has committed
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payment
Class A violation.
In
addition, the
Cybersecurity Company must repay the County for all amounts
improperly paid and all accrued interest and penalties that would apply
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BILL
No. 25-13
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to those amounts as if they were overdue taxes.
A Cybersecurity
Company who violates this Section is liable for all court costs and
expenses of the County in any civil action brought
Qy
the County to
recover any payment, interest, or penalty. The County may collect any
amount due, and otherwise enforce this Section,
Qy
any appropriate
legal action.
(h)
If all or part of the allowed state tax credit is recaptured under the
applicable state law, the Cybersecurity Company must repay the County
within 60 days the portion of any Supplement paid
Qy
the County that
was based on the recaptured credit.
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Approved:
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N:!t.:ot~uncil
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Approved:
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jou
/13
Date
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This is a correct copy ofCouncil action.
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Linda M. Lauer, Clerk of the Council
Date
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