Businesses that invest in research and development in Maryland may be entitled to an income tax credit. The total credits for all businesses may not exceed $9 million a year.
This credit is available for tax years beginning after December 31, 1999, but before January 1, 2020.
The credit may be taken against corporate income tax or State portion of the personal income tax. Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts may claim the tax credit.
Research and Development tax credits certified after December 15, 2012 are refundable for a "small business" to the extent that the tax credits exceed the income tax liability for that taxable year. A “Small Business” is defined as a for-profit corporation, limited liability company, partnership or sole-proprietorship with net book value assets totaling at the beginning or the end of the tax year for which the Maryland qualified research and development expenses are incurred, as reported on the balance sheet, less than $5,000,000.