Expedited Bill
No~.~14~-~16~----­
Concerning: Taxation - New Jobs Tax
Credit and Enhanced New Jobs Tax
Credit -Amount of Tax Credit - Term
of Credit
Revised: April
13. 2016
Draft No.
_1_
Introduced:
April
19. 2016
Enacted:
May
18. 2016
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: __,_N=o"""n=-e_ _ _ _ __
Ch. _ _ , Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Council President at the request of the County Executive
AN EXPEDITED ACT
to:
(1)
change the term of the Enhanced New Jobs Tax Credit; and
(2)
generally amend the law governing the Enhanced New Jobs Tax Credit
By amending
Montgomery County Code
Chapter 52, Taxation
Article X, New Jobs Tax Credit and Enhanced New Jobs Tax Credit
Section 52-72
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Heading or defined term.
Added to existing law by original bill.
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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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EXPEDITED BILL
No. 14-16
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Sec. 1. Section 52-72(b) is amended as follows:
52-72. Amount of tax credit; pass-through to lessees.
(a)
The new jobs tax credit that a taxpayer may claim against County
property taxes under this Article is the following percentage of the
property tax imposed on the assessment of the new or expanded
premises:
(1)
52% during the first and second taxable years in which a credit is
allowed;
(2)
39% during the third and fourth taxable years in which a credit is
allowed; and
(3)
26% during the fifth and sixth taxable years in which a credit is
allowed.
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After the sixth taxable year, the Finance Director must not allow a new jobs
tax credit under this Article.
(b)
The enhanced new jobs tax credit that a taxpayer may claim against
County property taxes under this Article is 58.5% of the property tax
imposed on the increase in assessment of:
( 1)
(2)
the new or expanded premises; and
any
substantially
renovated
real
property
adjoining
or
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neighboring the new or expanded premises.
-2-
A renovation is
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EXPEDITED BILL
No. 14-16
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substantial for purposes of this subsection if the renovation
results in a complete rehabilitation of at least 50% of each
building on the property.
The taxpayer may claim this credit in each of the first [12] 24 taxable years
after the Director certifies that the taxpayer is eligible for the credit.
(
c)
A lessor of real property must reduce the amount of taxes for which an
eligible business entity is contractually liable under a lease or rental
agreement by the amount of any tax credit allowed under this Article.
Section 2. Expedited Effective Date
The Council declares that this legislation is necessary for the immediate
protection of the public interest. This Act takes effect on the date on which it
becomes law.
Approved:
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Nancy Floreen, Pre ident, County Council
/$
f)O/G,
Approved:
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Isiah Leggett, County Executive
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This is a correct copy ofCouncil action.
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Linda
L.
Lauer, Clerk of the Council
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Date