Income Tax - Credit for Cybersecurity Measures Undertaken by Small Businesses
Impact
If passed, HB 936 would amend existing tax laws to incorporate provisions for this tax credit under the Maryland Annotated Code. Specifically, it allows a small business to claim a credit up to $1,000 for initial cybersecurity assessments and up to $500 for ongoing cybersecurity measures. This financial incentive is expected to mitigate the financial burden associated with adopting necessary cybersecurity standards, ultimately supporting business continuity and protecting sensitive customer information.
Summary
House Bill 936 introduces a state income tax credit specifically designed for small businesses that undertake cybersecurity measures. The bill aims to encourage these businesses to invest in cybersecurity practices by reimbursing a portion of their costs. This includes expenses for initial cybersecurity risk assessments and various recurring cybersecurity measures such as antivirus software, multi-factor authentication, and data encryption. The support for small businesses is particularly important given their vulnerability to cyber threats, and the bill seeks to enhance their resilience in the digital landscape.
Contention
While the bill generally has support from various stakeholders, potential points of contention could arise regarding the definition and eligibility criteria for small businesses claiming the credit. There may be debate around the adequacy of the proposed amounts and whether they sufficiently cover the expenses incurred by small businesses to improve their cybersecurity readiness. Additionally, some may question whether the focus on cybersecurity measures adequately addresses other pressing needs for small businesses, and if the scope of the bill might be broadened to include other forms of support.