Biotechnology Investment Incentive Tax Credit

Biotechnology Investment Incentive Tax Credit is sponsored by Maryland Tech Council. This program provides income tax credits equal to 50% of an eligible investment for investors in Qualified Maryland Biotechnology Companies (QMBCs), aiming to incentivize investment in seed and early-stage biotech companies.

Incentive Program MDT – Maryland Tech Council Baltimore Regional Network Chesapeake Regional Chapter Prince George’s County Tech Council WORKING TOGETHER FOR A BETTER FUTURE PROGRAMS, INCENTIVES AND INITIATIVES FOR MARYLAND’S MOST INNOVATIVE COMPANIES MTC can help members learn about incentives and programs designed to assist innovative Maryland companies grow and succeed.

We can also make introductions to the right people you need to know to help your business. Let us know how we may assist you. Biotechnology Investment Incentive Tax Credit Provides income tax credits equal to 50% of an eligible investment for investors in Qualified Maryland Biotechnology Companies (QMBCs).

This tax credit program offers incentives for investment in seed and early stage, biotech companies, up to $250,000. This program is funded at $12 million for FY2016. *Montgomery County offers a supplemental grant to investors of biotechnology companies located in Montgomery County who are approved and receive tax credits from the Maryland Biotechnology Investment Incentive Tax Credit Program.

Maryland Research and Development Tax Credit Provides Maryland businesses with qualified research and development expenses a tax credit. The two types of credits are the growth credit and the basic credit. The tax credit is now refundable so even if your company does not have a tax liability, you may apply for the credit.

This program has a $9 million annual cap. Cybersecurity Investment Incentive Tax Credit Provides a refundable tax credit to Qualified Maryland Cybersecurity Companies (QMCCs) that seek and secure investment from an in-state or out-of-state investor.

The purpose is to incent and attract early-stage cybersecurity companies to start up in or move to Maryland and to attract investment to cybersecurity companies in order to help them grow, create jobs and retain intellectual property in Maryland. This program is funded at $1. 5 million for FY2016.

*Montgomery County cybersecurity companies designated as a Qualified Maryland Cybersecurity Company that receive a final tax credit certificate for the Maryland cybersecurity investment tax credit are eligible for the local supplement the following year.

Maryland Employer Security Clearance Costs Tax Credit Provides an income tax credit to businesses that incur qualified federal security clearance administrative expenses and construction/equipment costs for constructing or renovating sensitive compartmented information facilities (SCIFs).

In addition, a qualified small business that performs security-based contracting in Maryland may be eligible for an income tax credit for the first year of rental payments for spaces leased in Maryland. The program consists of two credits: (1) Sensitive Compartmented Information Facility Costs Tax Credit; and (2) The First Year Leasing Costs Tax Credit for Qualified Small Business. This program has a $2 million annual cap.

Cellulosic Ethanol Technology Research and Development Tax Credit Provides a tax credit for businesses that incur qualified cellulosic ethanol technology research and development expenses in Maryland. Cellulosic ethanol technology means technology that is used to develop cellulosic biomass for conversion to ethanol fuel. This program has a $250,000 annual cap.

Provides direct equity and convertible debt investments of $100,000 to $1,000,000 seed and early stage companies. The fund has two investment vehicles: the Challenge Investment Program and the Enterprise Investment Fund. Focus industries are software, platform, IT, communications, cybersecurity, education tech, ]energy tech, health IT, mHealth, diagnostics and medical devices.

InvestMaryland is a funding source for early, mid and late stage growth companies. Through a premium insurance tax credit auction sale, the State of Maryland raised $84M to invest in early stage technologies in the areas of software, communications, cyber-security and life sciences. Starting July 2012, InvestMaryland funds were apportioned to venture capital firms (67%), the Maryland Venture Fund (24.

75% and the Equity Participation Investment Program (8. 25%)). Maryland Economic Development Assistance Authority and Fund Maryland Small Business Development Financing Authority Provides financing for small businesses that are not able to qualify for financing from private lending institutions or are owned by socially and economically disadvantaged persons.

The program includes the Contract Financing Program, the Equity Participation Investment Program, the Long-Term Guaranty Program and the Surety Bonding Program. Promotes State-funded human stem cell research and medical treatments through grants to public and private entities in Maryland. Applicants from Maryland-based public and private, for-profit and not-for-profit research organizations of all types are eligible for these awards.

Maryland Innovation Initiative Fosters the commercialization of technologies through technology validation, market assessment and the creation of start-up companies in Maryland based on a technology from a Qualified University (a University Start-up), and to accomplish this through collaborations between various schools, departments, and institutions within and among he Qualifying Universities and among other research organizations in the State.

Qualifying Universities are Johns Hopkins University, Morgan State University, University of Maryland College Park, University of Maryland Baltimore and University of Maryland Baltimore County. Technology Commercialization Fund Provides up to $100,000 (requires $50,000 company match) to support projects that advance a technology toward commercialization.

TCF enables companies to achieve early technical milestones that are critical to move technologies further along the commercialization pathway and lead to follow-on investments. Cyber Security Investment Fund Provides up to $100,000 to support projects that advance cybersecurity technology toward commercialization.

The program funds development of any processes or mechanisms to protect networks and devices from unauthorized access, attacks or destruction. To be eligible, the company: (1) must be a for-profit entity with fewer than 16 employees and with its principle place of employment in Maryland; and (2) is pre-revenue or has received less than an aggregate of $500,000 in equity investments from sophisticated investors.

This program has $1 million for FY2015. TEDCO has numerous programs that benefit the technology or life science community. They include: Veterans’ Opportunity Fund — The Veterans’ Opportunity Fund (VOF) invests in businesses that are started, owned and/or managed by veterans of the United States Armed Forces.

Propel Baltimore Fund — The Propel Baltimore Fund makes investments of up to $250,000 in early-stage, technology companies located in Baltimore City. The Fund will: address the critical need for more early-stage capital in Baltimore City, encourage more entrepreneurial activity in the City, create more high-paying jobs, and help to realize Baltimore City’s full potential as a destination for small and growing businesses.

Orange Knocks Cyber Fund — The Orange Knocks Cyber Fund (OKCF) invests in companies with economically compelling, technology-enabled solutions to critical problems in cyber security, including services, products and niche technology companies.

Chesapeake Regional Innovation Fund — The Chesapeake Regional Innovation Fund (CRIF) invests in early-stage companies which intend to create significant commercial enterprises based on potentially game-changing technologies developed at the region’s federal research labs and major research universities.

Rural Business Innovation Initiative — The Rural Business Innovation Initiative (RBI2) assists start up and small technology-based businesses in the rural areas of Maryland to advance the company to a higher level of success. The program offers professional ongoing mentoring and targeted projects to help companies succeed at no cost to the company.

Incubator Business Assistance Fund — The Incubator Business Assistance Fund provides technology based incubator facilities funding to obtain consulting and/or training resources to assist incubator companies that will help foster the development of the company.

Patent Assistance Program — The Patent Assistance Program provides matching funds to help start-up companies pay on-going patent expenses for technologies licensed from Maryland’s Universities. Agricultural Technology Innovation Program — The USDA Agricultural Research Service created the ATIP program to facilitate the commercialization of its research.

TEDCO is the founding member of the ATIP consortium, which allows Maryland Companies access to USDA/ARS research capabilities nationwide. Maryland Industrial Partnerships Program Accelerates the commercialization of technology in Maryland by jointly funding collaborative R&D projects between companies and University System of Maryland faculty.

The program provides cost-effective research through university partnering, access to expert university faculty and state-of-the-art facilities—including laboratories, graduate students, and equipment, the ability to select research capabilities to meet specific requirements, efficient transfer of technology from universities to companies and opportunities to work with students, who are potential future employees.

Maryland Health Care Product Development Corporation MHCPDC’s goal is to stimulate growth of the biomedical industry in the state through early stage investment with promising Maryland biomedical and medical technology companies. MHCPDC assists emerging companies with management advice, market research, technical assessments and early stage financing. The corporation’s investments range in amounts from $250,000 to $1 million.

MHCPDC expends significant efforts to identify and secure matching investments from commercial and state financing entities. VIEW THE 2019 POLICY PLATFORM