Proposes tax credit to support investment in cybersecurity industry
Article prepared by and republished courtesy of Drew M. Young and Joseph H. Langhirt of DLA Piper; originally published here http://www.dlapiper.com/maryland-proposes-tax-credit-to-support-investment-in-cybersecurity-industry/.
Maryland Governor Martin O’Malley’s recently released proposed Fiscal Year 2014 budget provides funding to support private investment in the cybersecurity industry.
Most notably the budget proposal would provide US$3 million for a new refundable state tax credit, the CyberMaryland Investment Incentive Tax Credit Program, to generate investment in early-stage cybersecurity businesses in Maryland.
The credit would be available for taxable years beginning after December 31, 2013 and would provide a 33 percent refundable tax credit (up to a maximum of credit of US$250,000) to investors in qualifying businesses that (1) are headquartered and operated in Maryland, (2) have been in operation for five years or less, (3) have at least one full-time employee primarily engaged in development of cybersecurity products for commercial and federal markets and (4) have at least US$100,000 in contributed owner’s equity.
The budget proposal also would provide US$1 million of funding for incubators, test bed sites and Department of Business & Economic Development staffing to strengthen infrastructure support for the cybersecurity industry and US$2.5 million to launch the Employment Advancement Right Now (EARN) program, which would provide Maryland’s workforce with necessary skills in key industry sectors, such as cyber technology, by providing funding for workforce training collaborations between businesses, local government and nonprofits.
To learn more about the status of these proposed budget items and how to take advantage of them if they are enacted by the Maryland state legislature, please contact Drew M. Young or Joseph H. Langhirt.