State Program
Maryland Research and Development Tax Credit
A competitively allocated research credit with refundable treatment available to qualifying small businesses.
Program Overview
Maryland administers its research and development tax credit through the Maryland Department of Commerce under an annual statewide allocation. Applicants must submit an application by the applicable deadline for qualifying research expenses incurred during the relevant calendar year. If the total amount of certified credits exceeds the available statewide allocation, credits may be prorated in accordance with applicable program rules. Qualifying small businesses that meet the statutory asset threshold may receive the credit as a refundable amount.
Eligibility
- Businesses with qualified research expenses incurred in Maryland may apply for the credit.
- Applicants must submit the required application to the Maryland Department of Commerce by the applicable annual deadline.
- Small-business refundability is subject to the statutory net book value of assets threshold.
- Additional eligibility and certification requirements may apply under Maryland law.
Benefits
- Credit is generally non-refundable for businesses that do not qualify for the small-business refundable treatment.
- Qualifying small businesses may receive the credit as a cash refund, subject to applicable requirements.
- Credits are subject to per-company and statewide allocation limits.
- If certified claims exceed the available statewide allocation, credits may be prorated under the applicable rules.
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