| Old | New | Differences | |
|---|---|---|---|
| 1 | - | LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 2 | 1 | ||
| 3 | - | – 1 – | |
| 4 | - | Chapter 732 | |
| 5 | - | (House Bill 478) | |
| 6 | 2 | ||
| 7 | - | AN ACT concerning | |
| 3 | + | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | + | [Brackets] indicate matter deleted from existing law. | |
| 5 | + | Underlining indicates amendments to bill. | |
| 6 | + | Strike out indicates matter stricken from the bill by amendment or deleted from the law by | |
| 7 | + | amendment. | |
| 8 | + | Italics indicate opposite chamber/conference committee amendments. | |
| 9 | + | *hb0478* | |
| 8 | 10 | ||
| 9 | - | Economic Development – Enterprise Zone Program – Alterations | |
| 11 | + | HOUSE BILL 478 | |
| 12 | + | C8 (2lr1470) | |
| 13 | + | ENROLLED BILL | |
| 14 | + | — Ways and Means/Budget and Taxation — | |
| 15 | + | Introduced by Delegate Palakovich Carr | |
| 10 | 16 | ||
| 11 | - | FOR the purpose of establishing the purpose of the Enterprise Zone Program; altering the | |
| 12 | - | circumstances under which the Secretary of Commerce may designate an area as an | |
| 13 | - | enterprise zone or a focus area; prohibiting the Secretary from designating a new | |
| 14 | - | enterprise zone or granting an expansion of an existing enterprise zone under certain | |
| 15 | - | circumstances; altering a certain limitation on the expansion of an existing | |
| 16 | - | enterprise zone during a single calendar year; altering the circumstances under | |
| 17 | - | which the Secretary may grant an extraordinary expansion of an enterprise zone; | |
| 18 | - | altering the State agencies responsible for assessing the effectiveness of certain tax | |
| 19 | - | credits provided to certain business entities in enterprise zones; requiring the State | |
| 20 | - | Department of Assessments and Taxation and the Comptroller to submit to the | |
| 21 | - | Department of Commerce a certain report; requiring each county within which an | |
| 22 | - | enterprise zone is located to submit to the Department of Commerce a certain report; | |
| 23 | - | requiring the Department of Commerce to provide certain notification to a county | |
| 24 | - | under certain circumstances; requiring the Department of Commerce to develop | |
| 25 | - | certain metrics and a framework for analyzing certain matters; altering the | |
| 26 | - | definitions of certain employees for purposes of determining eligibility for a certain | |
| 27 | - | credit against the State income tax; limiting the amount of a certain credit against | |
| 28 | - | the State income tax that may be claimed by a business entity each taxable year; | |
| 29 | - | limiting the total amount of credits against the State income tax that certain | |
| 30 | - | business entities may claim each taxable year; providing that, for any taxable year, | |
| 31 | - | the amount of a certain credit against the property tax imposed on certain qualified | |
| 32 | - | property may not exceed a certain amount; providing for the termination of the | |
| 33 | - | Enterprise Zone Program and, except under certain circumstances, eligibility for | |
| 34 | - | certain tax credits provided under the Program; and generally relating to the | |
| 35 | - | Enterprise Zone Program. | |
| 17 | + | Read and Examined by Proofreaders: | |
| 36 | 18 | ||
| 37 | - | BY repealing and reenacting, with amendments, | |
| 38 | - | Article – Economic Development | |
| 39 | - | Section 5–702, 5–704(a)(2) and (4) and (b) 5–704(a)(4), 5–705, 5–706, 5–707(d), and | |
| 40 | - | 5–709 | |
| 41 | - | Annotated Code of Maryland | |
| 42 | - | (2018 Replacement Volume and 2021 Supplement) | |
| 19 | + | _______________________________________________ | |
| 20 | + | Proofreader. | |
| 21 | + | _______________________________________________ | |
| 22 | + | Proofreader. | |
| 43 | 23 | ||
| 44 | - | BY repealing and reenacting, without amendments, | |
| 45 | - | Article – Economic Development | |
| 46 | - | Section 5–704(a)(1) and 5–707(a) and (d) and (d) | |
| 47 | - | Annotated Code of Maryland | |
| 48 | - | (2018 Replacement Volume and 2021 Supplement) | |
| 49 | - | Ch. 732 2022 LAWS OF MARYLAND | |
| 24 | + | Sealed with the Great Seal and presented to the Governor, for his approval this | |
| 50 | 25 | ||
| 51 | - | – 2 – | |
| 52 | - | BY adding to | |
| 53 | - | Article – Economic Development | |
| 54 | - | Section 5–710 | |
| 55 | - | Annotated Code of Maryland | |
| 56 | - | (2018 Replacement Volume and 2021 Supplement) | |
| 26 | + | _______ day of _______________ at _________________ _______ o’clock, ________M. | |
| 57 | 27 | ||
| 58 | - | BY repealing and reenacting, with amendments, | |
| 59 | - | Article – Tax – General | |
| 60 | - | Section 10–702 | |
| 61 | - | Annotated Code of Maryland | |
| 62 | - | (2016 Replacement Volume and 2021 Supplement) | |
| 28 | + | ______________________________________________ | |
| 29 | + | Speaker. | |
| 63 | 30 | ||
| 64 | - | BY repealing and reenacting, without amendments, | |
| 65 | - | Article – Tax – Property | |
| 66 | - | Section 9–103(b)(1) | |
| 67 | - | Annotated Code of Maryland | |
| 68 | - | (2019 Replacement Volume and 2021 Supplement) | |
| 31 | + | CHAPTER ______ | |
| 69 | 32 | ||
| 70 | - | BY repealing and reenacting, with amendments, | |
| 71 | - | Article – Tax – Property | |
| 72 | - | Section 9–103(d) | |
| 73 | - | Annotated Code of Maryland | |
| 74 | - | (2019 Replacement Volume and 2021 Supplement) | |
| 33 | + | AN ACT concerning 1 | |
| 75 | 34 | ||
| 76 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, | |
| 77 | - | That the Laws of Maryland read as follows: | |
| 35 | + | Economic Development – Enterprise Zone Program – Alterations 2 | |
| 78 | 36 | ||
| 79 | - | Article – Economic Development | |
| 37 | + | FOR the purpose of establishing the purpose of the Enterprise Zone Program; altering the 3 | |
| 38 | + | circumstances under which the Secretary of Commerce may designate an area as an 4 | |
| 39 | + | enterprise zone or a focus area; prohibiting the Secretary from designating a new 5 | |
| 40 | + | enterprise zone or granting an expansion of an existing enterprise zone under certain 6 | |
| 41 | + | circumstances; altering a certain limitation on the expansion of an existing 7 | |
| 42 | + | enterprise zone during a single calendar year; altering the circumstances under 8 | |
| 43 | + | which the Secretary may grant an extraordinary expansion of an enterprise zone; 9 | |
| 44 | + | altering the State agencies responsible for assessing the effectiveness of certain tax 10 | |
| 45 | + | credits provided to certain business entities in enterprise zones; requiring the State 11 | |
| 46 | + | Department of Assessments and Taxation and the Comptroller to submit to the 12 | |
| 47 | + | Department of Commerce a certain report; requiring each county within which an 13 | |
| 48 | + | enterprise zone is located to submit to the Department of Commerce a certain report; 14 | |
| 49 | + | requiring the Department of Commerce to provide certain notification to a county 15 2 HOUSE BILL 478 | |
| 80 | 50 | ||
| 81 | - | 5–702. | |
| 82 | 51 | ||
| 83 | - | (A) THE PURPOSE OF THE EN TERPRISE ZONES AUTHO RIZED UNDER THIS | |
| 84 | - | SUBTITLE IS TO ATTRA CT, RETAIN, AND ENCOURAGE COMMER CIAL DEVELOPMENT | |
| 85 | - | IN ECONOMICALLY DIST RESSED AREAS OF THE STATE, IN PARTNERSHIP WITH | |
| 86 | - | POLITICAL SUBDIVISIO NS, BY INCENTIVIZING CAP ITAL INVESTMENT AND JOB | |
| 87 | - | CREATION THROUGH REA L PROPERTY AND INCOM E TAX CREDITS. | |
| 52 | + | under certain circumstances; requiring the Department of Commerce to develop 1 | |
| 53 | + | certain metrics and a framework for analyzing certain matters; altering the 2 | |
| 54 | + | definitions of certain employees for purposes of determining eligibility for a certain 3 | |
| 55 | + | credit against the State income tax; limiting the amount of a certain credit against 4 | |
| 56 | + | the State income tax that may be claimed by a business entity each taxable year; 5 | |
| 57 | + | limiting the total amount of credits against the State income tax that certain 6 | |
| 58 | + | business entities may claim each taxable year; providing that, for any taxable year, 7 | |
| 59 | + | the amount of a certain credit against the property tax imposed on certain qualified 8 | |
| 60 | + | property may not exceed a certain amount; providing for the termination of the 9 | |
| 61 | + | Enterprise Zone Program and, except under certain circumstances, eligibility for 10 | |
| 62 | + | certain tax credits provided under the Program; and generally relating to the 11 | |
| 63 | + | Enterprise Zone Program. 12 | |
| 88 | 64 | ||
| 89 | - | (B) Subject to § 9–103 of the Tax – Property Article, a business entity that owns, | |
| 90 | - | operates, develops, constructs, or rehabilitates property intended for use primarily as single | |
| 91 | - | or multifamily residential property located in an enterprise zone may not benefit from an | |
| 92 | - | incentive or initiative under this subtitle. | |
| 65 | + | BY repealing and reenacting, with amendments, 13 | |
| 66 | + | Article – Economic Development 14 | |
| 67 | + | Section 5–702, 5–704(a)(2) and (4) and (b) 5–704(a)(4), 5–705, 5–706, 5–707(d), and 15 | |
| 68 | + | 5–709 16 | |
| 69 | + | Annotated Code of Maryland 17 | |
| 70 | + | (2018 Replacement Volume and 2021 Supplement) 18 | |
| 93 | 71 | ||
| 94 | - | 5–704. | |
| 72 | + | BY repealing and reenacting, without amendments, 19 | |
| 73 | + | Article – Economic Development 20 | |
| 74 | + | Section 5–704(a)(1) and 5–707(a) and (d) and (d) 21 | |
| 75 | + | Annotated Code of Maryland 22 | |
| 76 | + | (2018 Replacement Volume and 2021 Supplement) 23 | |
| 95 | 77 | ||
| 96 | - | (a) (1) The Secretary may only designate an area as an enterprise zone if the | |
| 97 | - | area: LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 78 | + | BY adding to 24 | |
| 79 | + | Article – Economic Development 25 | |
| 80 | + | Section 5–710 26 | |
| 81 | + | Annotated Code of Maryland 27 | |
| 82 | + | (2018 Replacement Volume and 2021 Supplement) 28 | |
| 98 | 83 | ||
| 99 | - | – 3 – | |
| 84 | + | BY repealing and reenacting, with amendments, 29 | |
| 85 | + | Article – Tax – General 30 | |
| 86 | + | Section 10–702 31 | |
| 87 | + | Annotated Code of Maryland 32 | |
| 88 | + | (2016 Replacement Volume and 2021 Supplement) 33 | |
| 100 | 89 | ||
| 101 | - | (i) in a priority funding area or in a qualified opportunity zone | |
| 102 | - | under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, | |
| 103 | - | Somerset County, or Wicomico County or meets an exception under Title 5, Subtitle 7B of | |
| 104 | - | the State Finance and Procurement Article; and | |
| 90 | + | BY repealing and reenacting, without amendments, 34 | |
| 91 | + | Article – Tax – Property 35 | |
| 92 | + | Section 9–103(b)(1) 36 | |
| 93 | + | Annotated Code of Maryland 37 | |
| 94 | + | (2019 Replacement Volume and 2021 Supplement) 38 | |
| 105 | 95 | ||
| 106 | - | (ii) satisfies at least one of the requirements specified in paragraph | |
| 107 | - | (2) of this subsection. | |
| 96 | + | BY repealing and reenacting, with amendments, 39 | |
| 97 | + | Article – Tax – Property 40 | |
| 98 | + | Section 9–103(d) 41 HOUSE BILL 478 3 | |
| 108 | 99 | ||
| 109 | - | (2) An area may be designated as an enterprise zone if: | |
| 110 | 100 | ||
| 111 | - | (i) the average rate of unemployment in EACH CENSUS TRACT | |
| 112 | - | WITHIN the area, or within a reasonable proximity to the area but in the same county IF | |
| 113 | - | FEWER THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT, for the most recent | |
| 114 | - | 18–month period for which data are available is at least 150% of the greater of the average | |
| 115 | - | rate of unemployment in either the State or the United States during that period; | |
| 101 | + | Annotated Code of Maryland 1 | |
| 102 | + | (2019 Replacement Volume and 2021 Supplement) 2 | |
| 116 | 103 | ||
| 117 | - | (ii) the population in EACH CENSUS TRACT WI THIN the area, or | |
| 118 | - | within a reasonable proximity to the area but in the same county IF FEWER THAN 1,500 | |
| 119 | - | INDIVIDUALS RESIDE I N THE CENSUS TRACT , qualifies the area as a low–income poverty | |
| 120 | - | area; | |
| 104 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 3 | |
| 105 | + | That the Laws of Maryland read as follows: 4 | |
| 121 | 106 | ||
| 122 | - | (iii) at least 70% of the families in EACH CENSUS TRACT WI THIN | |
| 123 | - | the area, or within a reasonable proximity to the area but in the same county IF FEWER | |
| 124 | - | THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , have incomes that are less | |
| 125 | - | than 80% of the median family income in the political subdivision that contains the area; | |
| 126 | - | or | |
| 107 | + | Article – Economic Development 5 | |
| 127 | 108 | ||
| 128 | - | (iv) the population in EACH CENSUS TRACT WI THIN the area, or | |
| 129 | - | within a reasonable proximity to the area but in the same county IF FEWER THAN 1,500 | |
| 130 | - | INDIVIDUALS RESIDE I N THE CENSUS TRACT , decreased by 10% between the most recent | |
| 131 | - | two censuses, and the political subdivision can demonstrate to the Secretary’s satisfaction | |
| 132 | - | that: | |
| 109 | + | 5–702. 6 | |
| 133 | 110 | ||
| 134 | - | 1. chronic abandonment or demolition of property is | |
| 135 | - | occurring in the area; or | |
| 111 | + | (A) THE PURPOSE OF THE EN TERPRISE ZONES AUTHO RIZED UNDER THIS 7 | |
| 112 | + | SUBTITLE IS TO ATTRA CT, RETAIN, AND ENCOURAGE COMMER CIAL DEVELOPMENT 8 | |
| 113 | + | IN ECONOMICALLY DIST RESSED AREAS OF THE STATE, IN PARTNERSHIP WITH 9 | |
| 114 | + | POLITICAL SUBDIVISIO NS, BY INCENTIVIZING CAP ITAL INVESTMENT AND JOB 10 | |
| 115 | + | CREATION THROUGH REA L PROPERTY AND INCOM E TAX CREDITS. 11 | |
| 136 | 116 | ||
| 137 | - | 2. substantial property tax arrearages exist in the area. | |
| 117 | + | (B) Subject to § 9–103 of the Tax – Property Article, a business entity that owns, 12 | |
| 118 | + | operates, develops, constructs, or rehabilitates property intended for use primarily as single 13 | |
| 119 | + | or multifamily residential property located in an enterprise zone may not benefit from an 14 | |
| 120 | + | incentive or initiative under this subtitle. 15 | |
| 138 | 121 | ||
| 139 | - | ||
| 122 | + | 5–704. 16 | |
| 140 | 123 | ||
| 141 | - | (I) SHALL ADOP T REGULATIONS GOVERN ING THE EVALUATION | |
| 142 | - | AND PRIORITIZATION O F APPLICATIONS FOR T HE DESIGNATION OF NE W | |
| 143 | - | ENTERPRISE ZONES UND ER THIS SECTION AND THE EXPANSION OF EXI STING | |
| 144 | - | ENTERPRISE ZONES UND ER § 5–705 OF THIS SUBTITLE; AND Ch. 732 2022 LAWS OF MARYLAND | |
| 124 | + | (a) (1) The Secretary may only designate an area as an enterprise zone if the 17 | |
| 125 | + | area: 18 | |
| 145 | 126 | ||
| 146 | - | – 4 – | |
| 127 | + | (i) in a priority funding area or in a qualified opportunity zone 19 | |
| 128 | + | under § 1400Z–1 of the Internal Revenue Code in Allegany County, Garrett County, 20 | |
| 129 | + | Somerset County, or Wicomico County or meets an exception under Title 5, Subtitle 7B of 21 | |
| 130 | + | the State Finance and Procurement Article; and 22 | |
| 147 | 131 | ||
| 148 | - | (II) | |
| 149 | - | ||
| 132 | + | (ii) satisfies at least one of the requirements specified in paragraph 23 | |
| 133 | + | (2) of this subsection. 24 | |
| 150 | 134 | ||
| 151 | - | (b) (1) Within 60 days after a submission date, the Secretary may designate | |
| 152 | - | one or more enterprise zones from among the areas described in the applications timely | |
| 153 | - | submitted. | |
| 135 | + | (2) An area may be designated as an enterprise zone if: 25 | |
| 154 | 136 | ||
| 155 | - | (2) The designation of an area as an enterprise zone is effective for 10 | |
| 156 | - | years. | |
| 137 | + | (i) the average rate of unemployment in EACH CENSUS TRACT 26 | |
| 138 | + | WITHIN the area, or within a reasonable proximity to the area but in the same county IF 27 | |
| 139 | + | FEWER THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , for the most recent 28 | |
| 140 | + | 18–month period for which data are available is at least 150% of the greater of the average 29 | |
| 141 | + | rate of unemployment in either the State or the United States during that period; 30 | |
| 157 | 142 | ||
| 158 | - | (3) The Secretary may not designate more than six enterprise zones in a | |
| 159 | - | calendar year. | |
| 143 | + | (ii) the population in EACH CENSUS TRACT WI THIN the area, or 31 | |
| 144 | + | within a reasonable proximity to the area but in the same county IF FEWER THAN 1,500 32 | |
| 145 | + | INDIVIDUALS RESIDE IN THE CEN SUS TRACT, qualifies the area as a low–income poverty 33 | |
| 146 | + | area; 34 4 HOUSE BILL 478 | |
| 160 | 147 | ||
| 161 | - | (4) IF THE SECRETARY REASONABLY ANTICIPATES THAT THE | |
| 162 | - | AGGREGATE AMOUNT OF PROPERTY T AX CREDITS CLAIMED U NDER § 9–103 OF THE | |
| 163 | - | TAX – PROPERTY ARTICLE FOR THE IMMED IATELY PRECEDING FIS CAL YEAR MAY | |
| 164 | - | EXCEED $60,000,000, THE SECRETARY MAY NOT DES IGNATE A NEW ENTERPR ISE | |
| 165 | - | ZONE DURING THE CURR ENT FISCAL YEAR . | |
| 166 | 148 | ||
| 167 | - | [(4)] (5) A county may not receive more than two enterprise zones in a | |
| 168 | - | calendar year. | |
| 169 | 149 | ||
| 170 | - | 5–705. | |
| 150 | + | (iii) at least 70% of the families in EACH CENSUS TRACT WI THIN 1 | |
| 151 | + | the area, or within a reasonable proximity to the area but in the same county IF FEWER 2 | |
| 152 | + | THAN 1,500 INDIVIDUALS RESIDE IN THE CENSUS TRACT, have incomes that are less 3 | |
| 153 | + | than 80% of the median family income in the political subdivision that contains the area; 4 | |
| 154 | + | or 5 | |
| 171 | 155 | ||
| 172 | - | (a) (1) A political subdivision may apply to the Secretary to expand an existing | |
| 173 | - | enterprise zone in the same manner as the political subdivision would apply to designate a | |
| 174 | - | new enterprise zone. | |
| 156 | + | (iv) the population in EACH CENSUS TRACT WI THIN the area, or 6 | |
| 157 | + | within a reasonable proximity to the area but in the same county IF FEWER THAN 1,500 7 | |
| 158 | + | INDIVIDUALS RESIDE I N THE CENSUS TRACT , decreased by 10% between the most recent 8 | |
| 159 | + | two censuses, and the political subdivision can demonstrate to the Secretary’s satisfaction 9 | |
| 160 | + | that: 10 | |
| 175 | 161 | ||
| 176 | - | (2) [The] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, | |
| 177 | - | THE Secretary may grant an expansion of an enterprise zone into an area that meets the | |
| 178 | - | requirements of § 5–704 of this subtitle. | |
| 162 | + | 1. chronic abandonment or demolition of property is 11 | |
| 163 | + | occurring in the area; or 12 | |
| 179 | 164 | ||
| 180 | - | (3) For purposes of § 5–704(b) of this subtitle, an expansion of an enterprise | |
| 181 | - | zone that does not exceed [50%] 25% of the existing geographic area of the enterprise zone | |
| 182 | - | does not count towards the limit on the number of enterprise zones that: | |
| 165 | + | 2. substantial property tax arrearages exist in the area. 13 | |
| 183 | 166 | ||
| 184 | - | ( | |
| 167 | + | (4) The Secretary: 14 | |
| 185 | 168 | ||
| 186 | - | (ii) a county may receive in a calendar year. | |
| 169 | + | (I) SHALL ADOPT REGULATI ONS GOVERNING THE EV ALUATION 15 | |
| 170 | + | AND PRIORITIZATION O F APPLICATIONS FOR T HE DESIGNATION OF NE W 16 | |
| 171 | + | ENTERPRISE ZONES UND ER THIS SECTION AND THE EXPANSION OF EXI STING 17 | |
| 172 | + | ENTERPRISE ZONES UND ER § 5–705 OF THIS SUBTITLE; AND 18 | |
| 187 | 173 | ||
| 188 | - | ( | |
| 189 | - | ||
| 174 | + | (II) may [establish by regulation any other requirements] ADOPT 19 | |
| 175 | + | REGULATIONS necessary and appropriate to carry out this subtitle. 20 | |
| 190 | 176 | ||
| 191 | - | (i) meets the requirements of § 5–704 of this subtitle; and LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 177 | + | (b) (1) Within 60 days after a submission date, the Secretary may designate 21 | |
| 178 | + | one or more enterprise zones from among the areas described in the applications timely 22 | |
| 179 | + | submitted. 23 | |
| 192 | 180 | ||
| 193 | - | – 5 – | |
| 181 | + | (2) The designation of an area as an enterprise zone is effective for 10 24 | |
| 182 | + | years. 25 | |
| 194 | 183 | ||
| 195 | - | (ii) in the determination of the Secretary, has suffered a significant | |
| 196 | - | loss of economic base OR MERITS INCLUSION IN AN ENTERPRISE ZON E FOR A | |
| 197 | - | COMPELLING ECONOMIC REASON. | |
| 184 | + | (3) The Secretary may not designate more than six enterprise zones in a 26 | |
| 185 | + | calendar year. 27 | |
| 198 | 186 | ||
| 199 | - | (2) For purposes of § 5–704(b) of this subtitle, an extraordinary expansion | |
| 200 | - | of an enterprise zone IS NOT SUBJECT TO TH E LIMITATION UNDER S UBSECTION (C) OF | |
| 201 | - | THIS SECTION AND does not count towards the limit on the number of enterprise zones | |
| 202 | - | that: | |
| 187 | + | (4) IF THE SECRETARY REASONABLY ANTICIPATES THAT THE 28 | |
| 188 | + | AGGREGATE AMOUNT OF PROPERTY TAX CREDITS CLAIMED UNDER § 9–103 OF THE 29 | |
| 189 | + | TAX – PROPERTY ARTICLE FOR THE IMMED IATELY PRECEDING FISCAL YEAR MAY 30 | |
| 190 | + | EXCEED $60,000,000, THE SECRETARY MAY NOT DES IGNATE A NEW ENTERPR ISE 31 | |
| 191 | + | ZONE DURING THE CURR ENT FISCAL YEAR . 32 | |
| 192 | + | HOUSE BILL 478 5 | |
| 203 | 193 | ||
| 204 | - | (i) the Secretary may designate in a calendar year; or | |
| 205 | 194 | ||
| 206 | - | (ii) a county may receive in a calendar year. | |
| 195 | + | [(4)] (5) A county may not receive more than two enterprise zones in a 1 | |
| 196 | + | calendar year. 2 | |
| 207 | 197 | ||
| 208 | - | (C) IF THE SECRETARY REASONABLY ANTICIPATES THAT THE AGGREGATE | |
| 209 | - | AMOUNT OF PROPERTY T AX CREDITS CLAIMED U NDER § 9–103 OF THE TAX – | |
| 210 | - | PROPERTY ARTICLE FOR THE IMMED IATELY PRECEDING FIS CAL YEAR MAY EXCEED | |
| 211 | - | $60,000,000, THE SECRETARY MAY NOT GRA NT AN EXPANSION OF A N EXISTING | |
| 212 | - | ENTERPRISE ZONE DURI NG THE CURRENT FISCA L YEAR. | |
| 198 | + | 5–705. 3 | |
| 213 | 199 | ||
| 214 | - | 5–706. | |
| 200 | + | (a) (1) A political subdivision may apply to the Secretary to expand an existing 4 | |
| 201 | + | enterprise zone in the same manner as the political subdivision would apply to designate a 5 | |
| 202 | + | new enterprise zone. 6 | |
| 215 | 203 | ||
| 216 | - | (a) A political subdivision may request the Secretary to designate all or part of an | |
| 217 | - | enterprise zone as a focus area for the lesser of: | |
| 204 | + | (2) [The] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, 7 | |
| 205 | + | THE Secretary may grant an expansion of an enterprise zone into an area that meets the 8 | |
| 206 | + | requirements of § 5–704 of this subtitle. 9 | |
| 218 | 207 | ||
| 219 | - | (1) 5 years; or | |
| 208 | + | (3) For purposes of § 5–704(b) of this subtitle, an expansion of an enterprise 10 | |
| 209 | + | zone that does not exceed [50%] 25% of the existing geographic area of the enterprise zone 11 | |
| 210 | + | does not count towards the limit on the number of enterprise zones that: 12 | |
| 220 | 211 | ||
| 221 | - | ( | |
| 212 | + | (i) the Secretary may designate in a calendar year; or 13 | |
| 222 | 213 | ||
| 223 | - | (b) The request may be made on or before a submission date when the political | |
| 224 | - | subdivision applies for the designation of a new enterprise zone or after the Secretary has | |
| 225 | - | designated an enterprise zone. | |
| 214 | + | (ii) a county may receive in a calendar year. 14 | |
| 226 | 215 | ||
| 227 | - | ( | |
| 228 | - | zone | |
| 216 | + | (b) (1) The Secretary may grant one extraordinary expansion of an enterprise 15 | |
| 217 | + | zone in the State each calendar year for an area that: 16 | |
| 229 | 218 | ||
| 230 | - | (1) the average unemployment rate in EACH CENSUS TRACT WI THIN the | |
| 231 | - | area, or within a reasonable proximity to the area but in the same county IF FEWER THAN | |
| 232 | - | 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , for the most recent 18–month | |
| 233 | - | period for which data are available is at least 150% of the greater of the average rate of | |
| 234 | - | unemployment in either the State or the United States during that same period; | |
| 219 | + | (i) meets the requirements of § 5–704 of this subtitle; and 17 | |
| 235 | 220 | ||
| 236 | - | (2) the population in EACH CENSUS TRACT WI THIN the area, or within a | |
| 237 | - | reasonable proximity to the area but in the same county IF FEWER THAN 1,500 Ch. 732 2022 LAWS OF MARYLAND | |
| 221 | + | (ii) in the determination of the Secretary, has suffered a significant 18 | |
| 222 | + | loss of economic base OR MERITS INCLUSION IN AN ENTERPRISE ZON E FOR A 19 | |
| 223 | + | COMPELLING ECONOMIC REASON. 20 | |
| 238 | 224 | ||
| 239 | - | – 6 – | |
| 240 | - | INDIVIDUALS RESIDE I N THE CENSUS TRACT , has an incidence of poverty that is at least | |
| 241 | - | 150% of the national average; | |
| 225 | + | (2) For purposes of § 5–704(b) of this subtitle, an extraordinary expansion 21 | |
| 226 | + | of an enterprise zone IS NOT SUBJECT TO TH E LIMITATION UNDER S UBSECTION (C) OF 22 | |
| 227 | + | THIS SECTION AND does not count towards the limit on the number of enterprise zones 23 | |
| 228 | + | that: 24 | |
| 242 | 229 | ||
| 243 | - | (3) the crime rate in EACH CENSUS TRACT WI THIN the area, or within a | |
| 244 | - | reasonable proximity to the area but in the same county IF FEWER THAN 1,500 | |
| 245 | - | INDIVIDUALS RESIDE IN THE CENSUS TRACT , is at least 150% of the crime rate in the | |
| 246 | - | political subdivision where the area is located; | |
| 230 | + | (i) the Secretary may designate in a calendar year; or 25 | |
| 247 | 231 | ||
| 248 | - | (4) the percentage of substandard housing in EACH CENSUS TRACT | |
| 249 | - | WITHIN the area, or within a reasonable proximity to the area but in the same county IF | |
| 250 | - | FEWER THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , is at least 200% of | |
| 251 | - | the percentage of housing units in the State that are substandard, according to data from | |
| 252 | - | the United States Bureau of the Census or other State or federal government data the | |
| 253 | - | Secretary considers appropriate; or | |
| 232 | + | (ii) a county may receive in a calendar year. 26 | |
| 254 | 233 | ||
| 255 | - | ( | |
| 256 | - | ||
| 257 | - | ||
| 258 | - | ||
| 259 | - | ||
| 234 | + | (C) IF THE SECRETARY REASONABLY ANTICIPATES THAT THE AGGREGATE 27 | |
| 235 | + | AMOUNT OF PROPERTY T AX CREDITS CLAIMED U NDER § 9–103 OF THE TAX – 28 | |
| 236 | + | PROPERTY ARTICLE FOR THE IMMED IATELY PRECEDING FIS CAL YEAR MAY EXCEED 29 | |
| 237 | + | $60,000,000, THE SECRETARY MAY NOT GRA NT AN EXPANSION OF A N EXISTING 30 | |
| 238 | + | ENTERPRISE ZONE DURI NG THE CURRENT FISCA L YEAR. 31 | |
| 260 | 239 | ||
| 261 | - | 5– | |
| 240 | + | 5–706. 32 6 HOUSE BILL 478 | |
| 262 | 241 | ||
| 263 | - | (a) To the extent provided for in this section, a business entity is entitled to: | |
| 264 | 242 | ||
| 265 | - | (1) the special property tax credit in § 9–103 of the Tax – Property Article; | |
| 266 | 243 | ||
| 267 | - | (2) the income tax credits in § 10–702 of the Tax – General Article; and | |
| 244 | + | (a) A political subdivision may request the Secretary to designate all or part of an 1 | |
| 245 | + | enterprise zone as a focus area for the lesser of: 2 | |
| 268 | 246 | ||
| 269 | - | (3) consideration for financial assistance from programs in Subtitle 1 of | |
| 270 | - | this title. | |
| 247 | + | (1) 5 years; or 3 | |
| 271 | 248 | ||
| 272 | - | (d) (1) Except as provided in § 10–702 of the Tax – General Article and § | |
| 273 | - | 9–103 of the Tax – Property Article, the incentives and initiatives set forth in this section | |
| 274 | - | are available for 10 years after the date that an area is designated an enterprise zone. | |
| 249 | + | (2) the remainder of the 10–year term of the applicable enterprise zone. 4 | |
| 275 | 250 | ||
| 276 | - | ( | |
| 277 | - | ||
| 278 | - | ||
| 251 | + | (b) The request may be made on or before a submission date when the political 5 | |
| 252 | + | subdivision applies for the designation of a new enterprise zone or after the Secretary has 6 | |
| 253 | + | designated an enterprise zone. 7 | |
| 279 | 254 | ||
| 280 | - | (II) A BUSINESS ENTITY THAT LOCATES IN AN ENTERP RISE | |
| 281 | - | ZONE BEFORE THE TERM INATION DATE OF THIS SUBTITLE PROVIDED UN DER § | |
| 282 | - | 5–710 OF THIS SUBTITLE REM AINS ELIGIBLE FOR TH E BENEFITS AVAILABLE TO A | |
| 283 | - | BUSINESS ENTITY UNDE R THIS SECTION , PROVIDED THAT THE BU SINESS ENTITY LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 255 | + | (c) The Secretary may grant the request if the area is located in an enterprise 8 | |
| 256 | + | zone and meets at least three of the following criteria: 9 | |
| 284 | 257 | ||
| 285 | - | – 7 – | |
| 286 | - | MEETS THE REQUIREMEN TS AND CONDITIONS OF THE CODE SECTION APPLICAB LE | |
| 287 | - | TO THE BENEFIT . | |
| 258 | + | (1) the average unemployment rate in EACH CENSUS TRACT WI THIN the 10 | |
| 259 | + | area, or within a reasonable proximity to the area but in the same county IF FEWER THAN 11 | |
| 260 | + | 1,500 INDIVIDUALS RESID E IN THE CENSUS TRAC T, for the most recent 18–month 12 | |
| 261 | + | period for which data are available is at least 150% of the greater of the average rate of 13 | |
| 262 | + | unemployment in either the State or the United States during that same period; 14 | |
| 288 | 263 | ||
| 289 | - | 5–709. | |
| 264 | + | (2) the population in EACH CENSUS TRACT WITHIN the area, or within a 15 | |
| 265 | + | reasonable proximity to the area but in the same county IF FEWER THAN 1,500 16 | |
| 266 | + | INDIVIDUALS RESIDE I N THE CENSUS TRACT , has an incidence of poverty that is at least 17 | |
| 267 | + | 150% of the national average; 18 | |
| 290 | 268 | ||
| 291 | - | (a) The Department [and the Comptroller jointly] shall assess each year the | |
| 292 | - | effectiveness of the tax credits provided to business entities in enterprise zones and focus | |
| 293 | - | areas in enterprise zones, including: | |
| 269 | + | (3) the crime rate in EACH CENSUS TRACT WITH IN the area, or within a 19 | |
| 270 | + | reasonable proximity to the area but in the same county IF FEWER THAN 1,500 20 | |
| 271 | + | INDIVIDUALS RESIDE I N THE CENSUS TRACT , is at least 150% of the crime rate in the 21 | |
| 272 | + | political subdivision where the area is located; 22 | |
| 294 | 273 | ||
| 295 | - | (1) the number and amounts of credits granted each year; and | |
| 274 | + | (4) the percentage of substandard housing in EACH CENSUS TRACT 23 | |
| 275 | + | WITHIN the area, or within a reasonable proximity to the area but in the same county IF 24 | |
| 276 | + | FEWER THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , is at least 200% of 25 | |
| 277 | + | the percentage of housing units in the State that are substandard, according to data from 26 | |
| 278 | + | the United States Bureau of the Census or other State or federal government data the 27 | |
| 279 | + | Secretary considers appropriate; or 28 | |
| 296 | 280 | ||
| 297 | - | (2) the success of the tax credits in attracting and retaining business | |
| 298 | - | entities in enterprise zones and focus areas. | |
| 281 | + | (5) at least 20% of the square footage of commercial property in EACH 29 | |
| 282 | + | CENSUS TRACT WITHIN the area, or within a reasonable proximity to the area but within 30 | |
| 283 | + | the same county IF FEWER THAN 1,500 INDIVIDUALS RESIDE I N THE CENSUS TRACT , 31 | |
| 284 | + | is vacant, according to data from the United States Bureau of the Census or other State or 32 | |
| 285 | + | federal government data the Secretary considers appropriate. 33 | |
| 299 | 286 | ||
| 300 | - | (B) (1) ON OR BEFORE SEPTEMBER 15 EACH YEAR , THE STATE | |
| 301 | - | DEPARTMENT OF ASSESSMENTS AND TAXATION SHALL SUBMIT TO THE | |
| 302 | - | DEPARTMENT A REPORT T HAT INCLUDES THE FOL LOWING INFO RMATION FOR THE | |
| 303 | - | IMMEDIATELY PRECEDIN G TAXABLE YEAR : | |
| 287 | + | 5–707. 34 HOUSE BILL 478 7 | |
| 304 | 288 | ||
| 305 | - | (I) THE NUMBER OF PROPER TIES CLAIMING A PROP ERTY TAX | |
| 306 | - | CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE CALCULATED IN | |
| 307 | - | ACCORDANCE WITH § 9–103(D)(1) OF THE TAX – PROPERTY ARTICLE; | |
| 308 | 289 | ||
| 309 | - | (II) THE NUMBER OF PROPERTIES CLAIMI NG A PROPERTY TAX | |
| 310 | - | CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE CALCULATED IN | |
| 311 | - | ACCORDANCE WITH § 9–103(D)(4) OF THE TAX – PROPERTY ARTICLE; | |
| 312 | 290 | ||
| 313 | - | (III) THE NUMBER OF PROPER TIES NEWLY CERTIFIED AS | |
| 314 | - | QUALIFIED PROPERTIES BY THE STATE DEPARTMENT OF ASSESSMENTS AND | |
| 315 | - | TAXATION AS ELIGIBLE FOR THE PRO PERTY TAX CREDIT UND ER § 9–103 OF THE TAX | |
| 316 | - | – PROPERTY ARTICLE; AND | |
| 291 | + | (a) To the extent provided for in this section, a business entity is entitled to: 1 | |
| 317 | 292 | ||
| 318 | - | (IV) FOR EACH TAXPAYER CL AIMING OR RECEIVING A PROPERTY | |
| 319 | - | TAX CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE : | |
| 293 | + | (1) the special property tax credit in § 9–103 of the Tax – Property Article; 2 | |
| 320 | 294 | ||
| 321 | - | | |
| 295 | + | (2) the income tax credits in § 10–702 of the Tax – General Article; and 3 | |
| 322 | 296 | ||
| 323 | - | | |
| 324 | - | ||
| 297 | + | (3) consideration for financial assistance from programs in Subtitle 1 of 4 | |
| 298 | + | this title. 5 | |
| 325 | 299 | ||
| 326 | - | | |
| 327 | - | ||
| 328 | - | ||
| 300 | + | (d) (1) Except as provided in § 10–702 of the Tax – General Article and § 6 | |
| 301 | + | 9–103 of the Tax – Property Article, the incentives and initiatives set forth in this section 7 | |
| 302 | + | are available for 10 years after the date that an area is designated an enterprise zone. 8 | |
| 329 | 303 | ||
| 330 | - | – 8 – | |
| 331 | - | (2) ON OR BEFORE SEPTEMBER 15 EACH YEAR, THE COMPTROLLER | |
| 332 | - | SHALL SUBMIT TO THE DEPARTMENT A REPORT T HAT INCLUDES THE FOL LOWING | |
| 333 | - | INFORMATION FOR THE IMMEDIATELY PRECEDIN G TAXABLE YEAR : | |
| 304 | + | (2) (I) A law enacted after the enactment of this section that eliminates 9 | |
| 305 | + | or reduces the benefits available to a business entity under this section does not apply to a 10 | |
| 306 | + | business entity that was in an enterprise zone before the effective date of the law. 11 | |
| 334 | 307 | ||
| 335 | - | (I) THE NAME AND ADDRESS OF EACH BUSINESS ENT ITY THAT | |
| 336 | - | CLAIMED AN INCOME TA X CREDIT UNDER § 10–702 OF THE TAX – GENERAL | |
| 337 | - | ARTICLE; | |
| 308 | + | (II) A BUSINESS ENTITY THAT LOCATES IN AN ENTERP RISE 12 | |
| 309 | + | ZONE BEFORE THE TERM INATION DATE OF THIS SUBTITLE PROV IDED UNDER § 13 | |
| 310 | + | 5–710 OF THIS SUBTITLE REM AINS ELIGIBLE FOR TH E BENEFITS AVAILABLE TO A 14 | |
| 311 | + | BUSINESS ENTITY UNDE R THIS SECTION , PROVIDED THAT THE BU SINESS ENTITY 15 | |
| 312 | + | MEETS THE REQUIREMEN TS AND CONDITIONS OF THE CODE SECTION APPLICAB LE 16 | |
| 313 | + | TO THE BENEFIT . 17 | |
| 338 | 314 | ||
| 339 | - | (II) THE BUSINES S ACTIVITY CODE OR NORTH AMERICAN | |
| 340 | - | INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODE OF THE BUSINESS ENTITY; | |
| 315 | + | 5–709. 18 | |
| 341 | 316 | ||
| 342 | - | (III) THE NUMBER OF QUALIF IED EMPLOYEES AND FO CUS AREA | |
| 343 | - | EMPLOYEES EMPLOYED B Y THE BUSINESS ENTIT Y; | |
| 317 | + | (a) The Department [and the Comptroller jointly] shall assess each year the 19 | |
| 318 | + | effectiveness of the tax credits provided to business entities in enterprise zones and focus 20 | |
| 319 | + | areas in enterprise zones, including: 21 | |
| 344 | 320 | ||
| 345 | - | (IV) THE NUMBER OF ECONOM ICALLY DISADVANTAGED | |
| 346 | - | INDIVIDUALS EMPLOYED B Y THE BUSINESS ENTIT Y AND THE NUMBER OF YEARS FOR | |
| 347 | - | WHICH THOSE ECONOMIC ALLY DISADVANTAGED I NDIVIDUALS HAVE BEEN | |
| 348 | - | EMPLOYED BY THE BUSI NESS ENTITY; AND | |
| 321 | + | (1) the number and amounts of credits granted each year; and 22 | |
| 349 | 322 | ||
| 350 | - | ( | |
| 351 | - | ||
| 323 | + | (2) the success of the tax credits in attracting and retaining business 23 | |
| 324 | + | entities in enterprise zones and focus areas. 24 | |
| 352 | 325 | ||
| 353 | - | (C) (1) (I) ON OR BEFORE SEPTEMBER 15 EACH YEAR, EACH COUNTY | |
| 354 | - | WITHIN WHICH AN ENTE RPRISE ZONE IS LOCAT ED SHALL SUBMIT TO T HE | |
| 355 | - | DEPARTMENT A DETAILED REPORT ON EACH ENTER PRISE ZONE IN THE CO UNTY TO | |
| 356 | - | ASSIST THE DEPARTMENT IN THE ASS ESSMENT REQUIRED UND ER SUBSECTION (A) | |
| 357 | - | OF THIS SECTION. | |
| 326 | + | (B) (1) ON OR BEFORE SEPTEMBER 15 EACH YEAR , THE STATE 25 | |
| 327 | + | DEPARTMENT OF ASSESSMENTS AND TAXATION SHALL SUBMIT TO THE 26 | |
| 328 | + | DEPARTME NT A REPORT THAT INC LUDES THE FOLLOWING INFORMATION FOR THE 27 | |
| 329 | + | IMMEDIATELY PRECEDIN G TAXABLE YEAR : 28 | |
| 358 | 330 | ||
| 359 | - | (II) THE COUNTY SHALL INCL UDE IN THE REPORT RE QUIRED | |
| 360 | - | UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH TH E FOLLOWING INFORMAT ION | |
| 361 | - | FOR THE IMMEDIATELY PRECEDING FISCAL YEA R: | |
| 331 | + | (I) THE NUMBER OF PROPER TIES CLAIMING A PROP ERTY TAX 29 | |
| 332 | + | CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE CALCULATED IN 30 | |
| 333 | + | ACCORDANCE WITH § 9–103(D)(1) OF THE TAX – PROPERTY ARTICLE; 31 | |
| 334 | + | 8 HOUSE BILL 478 | |
| 362 | 335 | ||
| 363 | - | 1. THE NUMBER OF PROPER TIES NEWLY CERTIFIED AS | |
| 364 | - | QUALIFIED PROPERTIES; | |
| 365 | 336 | ||
| 366 | - | | |
| 367 | - | ||
| 368 | - | TAX | |
| 337 | + | (II) THE NUMBER OF PROPER TIES CLAIMING A PROP ERTY TAX 1 | |
| 338 | + | CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE CALCULATED IN 2 | |
| 339 | + | ACCORDANCE WITH § 9–103(D)(4) OF THE TAX – PROPERTY ARTICLE; 3 | |
| 369 | 340 | ||
| 370 | - | | |
| 371 | - | ||
| 372 | - | ||
| 373 | - | ||
| 341 | + | (III) THE NUMBER OF PROPER TIES NEWLY CERTIFIE D AS 4 | |
| 342 | + | QUALIFIED PROPERTIES BY THE STATE DEPARTMENT OF ASSESSMENTS AND 5 | |
| 343 | + | TAXATION AS ELIGIBLE FOR THE PRO PERTY TAX CREDIT UND ER § 9–103 OF THE TAX 6 | |
| 344 | + | – PROPERTY ARTICLE; AND 7 | |
| 374 | 345 | ||
| 375 | - | – 9 – | |
| 376 | - | A. WHETHER THE PROJECT IS LOCATED WITHIN A FOCUS | |
| 377 | - | AREA; | |
| 346 | + | (IV) FOR EACH TAXPAYER CL AIMING OR RECEIVING A PROPERTY 8 | |
| 347 | + | TAX CREDIT UNDER § 9–103 OF THE TAX – PROPERTY ARTICLE : 9 | |
| 378 | 348 | ||
| 379 | - | B. WHETHER THE PROJECT MAY QUALIFY FOR A CR EDIT | |
| 380 | - | UNDER THIS SUBTITLE AGAINST THE TAX IMPO SED ON REAL PR OPERTY, PERSONAL | |
| 381 | - | PROPERTY, OR INCOME; AND | |
| 349 | + | 1. THE NAME OF THE TAXP AYER; 10 | |
| 382 | 350 | ||
| 383 | - | | |
| 384 | - | ||
| 351 | + | 2. THE LOCATION OF THE QUALIFIED PROPERTY F OR 11 | |
| 352 | + | WHICH THE CREDIT WAS CLAIMED; AND 12 | |
| 385 | 353 | ||
| 386 | - | (2) (I) IF A COUNTY FAILS TO PROVIDE THE REPORT R EQUIRED | |
| 387 | - | UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE DEPARTMENT SHALL NOTI FY | |
| 388 | - | THE COUNTY THAT THE REPO RT IS DUE. | |
| 354 | + | 3. THE AMOUNT OF TAX SA VINGS RECEIVED BY EA CH 13 | |
| 355 | + | QUALIFIED PROPERTY . 14 | |
| 389 | 356 | ||
| 390 | - | (II) IF, AFTER THE DEPARTMENT HAS PROVID ED A COUNTY THE | |
| 391 | - | NOTICE DESCRIBED UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE COUNTY | |
| 392 | - | FAILS TO PROMPTLY PR OVIDE THE OVERDUE RE PORT, THE SECRETARY MAY NOT | |
| 393 | - | DESIGNATE A NEW ENTE RPRISE ZONE IN THE COUNTY O R GRANT THE EXPANSIO N OF | |
| 394 | - | AN EXISTING ENTERPRI SE ZONE IN THE COUNT Y UNTIL THE REPORT I S RECEIVED | |
| 395 | - | BY THE DEPARTMENT . | |
| 357 | + | (2) ON OR BEFORE SEPTEMBER 15 EACH YEAR, THE COMPTROLLER 15 | |
| 358 | + | SHALL SUBMIT TO THE DEPARTMENT A REPORT T HAT INCLUDES THE FOL LOWING 16 | |
| 359 | + | INFORMATION FOR THE IMMEDIATELY PRECEDIN G TAXABLE YEAR : 17 | |
| 396 | 360 | ||
| 397 | - | (D) THE DEPARTMENT SHALL DEVE LOP FORMAL METRICS A ND A | |
| 398 | - | FRAMEWORK FOR ANALYZ ING: | |
| 361 | + | (I) THE NAME AND ADDRESS OF EACH BUSINESS ENT ITY THAT 18 | |
| 362 | + | CLAIMED AN INCOME TA X CREDIT UNDER § 10–702 OF THE TAX – GENERAL 19 | |
| 363 | + | ARTICLE; 20 | |
| 399 | 364 | ||
| 400 | - | (1) THE COST–EFFECTIVENESS OF EAC H ENTERPRISE ZONE ; AND | |
| 365 | + | (II) THE BUSINESS ACTIVIT Y CODE OR NORTH AMERICAN 21 | |
| 366 | + | INDUSTRY CLASSIFICATION SYSTEM (NAICS) CODE OF THE BUSINESS ENTITY; 22 | |
| 401 | 367 | ||
| 402 | - | ( | |
| 403 | - | ||
| 368 | + | (III) THE NUMBER OF QUALIF IED EMPLOYEES AND FO CUS AREA 23 | |
| 369 | + | EMPLOYEES EMPLOYED B Y THE BUSINESS ENTIT Y; 24 | |
| 404 | 370 | ||
| 405 | - | [(b)] (E) On or before December 15 [of] each year, the Department [and the | |
| 406 | - | Comptroller] shall submit to the Governor and, in accordance with § 2–1257 of the State | |
| 407 | - | Government Article, the General Assembly a report outlining the findings of the | |
| 408 | - | Department [and the Comptroller] and any other information of value in determining the | |
| 409 | - | effectiveness of the tax credits provided under § 5–707(b) of this subtitle. | |
| 371 | + | (IV) THE NUMBER OF ECONOMI CALLY DISADVANTAGED 25 | |
| 372 | + | INDIVIDUALS EMPLOYED BY THE BUSINESS ENTI TY AND THE NUMBER OF YEARS FOR 26 | |
| 373 | + | WHICH THOSE ECONOMIC ALLY DISADVANTAGED I NDIVIDUALS HAVE BEEN 27 | |
| 374 | + | EMPLOYED BY THE BUSI NESS ENTITY; AND 28 | |
| 410 | 375 | ||
| 411 | - | 5–710. | |
| 376 | + | (V) THE TOTAL AMOUNT OF THE INCOME TAX CRE DIT CLAIMED 29 | |
| 377 | + | BY THE BUSINESS ENTI TY. 30 | |
| 412 | 378 | ||
| 413 | - | THIS SUBTITLE AND , EXCEPT AS PROVIDED I N § 5–707(D)(2) OF THIS | |
| 414 | - | SUBTITLE, ELIGIBILITY FOR THE TAX CREDITS PROVIDED UNDER § 5–707(A) OF THIS | |
| 415 | - | SUBTITLE SHALL TERMI NATE ON JANUARY 1, 2030. | |
| 379 | + | (C) (1) (I) ON OR BEFORE SEPTEMBER 15 EACH YEAR, EACH COUNTY 31 | |
| 380 | + | WITHIN WHICH AN ENTE RPRISE ZONE IS LOCAT ED SHALL SUBMIT TO T HE 32 HOUSE BILL 478 9 | |
| 416 | 381 | ||
| 417 | - | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read | |
| 418 | - | as follows: | |
| 419 | - | Ch. 732 2022 LAWS OF MARYLAND | |
| 420 | 382 | ||
| 421 | - | – 10 – | |
| 422 | - | Article – Tax – General | |
| 383 | + | DEPARTMENT A DETAILED REPORT ON EACH ENTER PRISE ZONE IN THE CO UNTY TO 1 | |
| 384 | + | ASSIST THE DEPARTMENT IN THE ASSESSMENT REQUI RED UNDER SUBSECTION (A) 2 | |
| 385 | + | OF THIS SECTION. 3 | |
| 423 | 386 | ||
| 424 | - | 10–702. | |
| 387 | + | (II) THE COUNTY SHALL INCL UDE IN THE REPORT RE QUIRED 4 | |
| 388 | + | UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH TH E FOLLOWING INFORMAT ION 5 | |
| 389 | + | FOR THE IMMEDIATELY PRECEDING FISCAL YEA R: 6 | |
| 425 | 390 | ||
| 426 | - | (a) (1) In this section the following words have the meanings indicated. | |
| 391 | + | 1. THE NUMBER OF PROP ERTIES NEWLY CERTIFI ED AS 7 | |
| 392 | + | QUALIFIED PROPERTIES ; 8 | |
| 427 | 393 | ||
| 428 | - | (2) (i) “Business entity” means: | |
| 394 | + | 1. 2. NOTABLE EXAMPLES OF REDEVELOPMENT OR NEW 9 | |
| 395 | + | BUSINESSES RELOCATIN G OR EXPANDING IN TH E ENTERPRISE ZONE DU E TO THE 10 | |
| 396 | + | TAX CREDITS PROVIDED UNDER THIS SUBTITLE ; AND 11 | |
| 429 | 397 | ||
| 430 | - | 1. a person conducting or operating a trade or business; or | |
| 398 | + | 2. 3. A DESCRIPTION OF FUT URE ECONOMIC 12 | |
| 399 | + | DEVELOPMENT PROJECTS THAT MIGHT CLAIM A T AX CREDIT PROVIDED U NDER THIS 13 | |
| 400 | + | SUBTITLE, INCLUDING WITH RESPE CT TO EACH PROJECT : 14 | |
| 431 | 401 | ||
| 432 | - | | |
| 433 | - | ||
| 402 | + | A. WHETHER THE PROJECT IS LOCATED WITHIN A FOCUS 15 | |
| 403 | + | AREA; 16 | |
| 434 | 404 | ||
| 435 | - | | |
| 436 | - | ||
| 437 | - | ||
| 405 | + | B. WHETHER THE PROJECT MAY QUALIFY FOR A CR EDIT 17 | |
| 406 | + | UNDER THIS SU BTITLE AGAINST THE T AX IMPOSED ON REAL P ROPERTY, PERSONAL 18 | |
| 407 | + | PROPERTY, OR INCOME; AND 19 | |
| 438 | 408 | ||
| 439 | - | (3) “Economically disadvantaged individual” means an individual who is | |
| 440 | - | certified by provisions that the Maryland Department of Labor adopts as an individual who, | |
| 441 | - | before becoming employed by a business entity in an enterprise zone: | |
| 409 | + | C. ANTICIPATED CAPITAL OR PERSONAL PROPERTY 20 | |
| 410 | + | EXPENDITURES FOR THE PROJECT. 21 | |
| 442 | 411 | ||
| 443 | - | (i) | |
| 444 | - | ||
| 445 | - | ||
| 412 | + | (2) (I) IF A COUNTY FAILS TO PROVIDE THE REPORT R EQUIRED 22 | |
| 413 | + | UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE DEPARTMENT SHALL NOTI FY 23 | |
| 414 | + | THE COUNTY THAT THE REPORT IS DUE. 24 | |
| 446 | 415 | ||
| 447 | - | (ii) in the absence of an applicable federal act, met the criteria for an | |
| 448 | - | economically disadvantaged individual that the Secretary of Labor sets. | |
| 416 | + | (II) IF, AFTER THE DEPARTMENT HAS PROVID ED A COUNTY THE 25 | |
| 417 | + | NOTICE DESCRIBED UND ER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE COUNTY 26 | |
| 418 | + | FAILS TO PROMPTLY PR OVIDE THE OVERDUE RE PORT, THE SECRETARY MAY NOT 27 | |
| 419 | + | DESIGNATE A NEW ENTE RPRISE ZONE IN THE C OUNTY OR GRANT THE E XPANSION OF 28 | |
| 420 | + | AN EXISTING ENTERPRI SE ZONE IN THE COUNT Y UNTIL THE REPORT I S RECEIVED 29 | |
| 421 | + | BY THE DEPARTMENT . 30 | |
| 449 | 422 | ||
| 450 | - | ( | |
| 451 | - | ||
| 423 | + | (D) THE DEPARTMENT SHALL DEVE LOP FORMAL METRICS A ND A 31 | |
| 424 | + | FRAMEWORK FOR ANALYZ ING: 32 | |
| 452 | 425 | ||
| 453 | - | (ii) “Enterprise zone” includes a Regional Institution Strategic | |
| 454 | - | Enterprise zone established under Title 5, Subtitle 14 of the Economic Development Article. | |
| 426 | + | (1) THE COST–EFFECTIVENESS OF EAC H ENTERPRISE ZONE ; AND 33 10 HOUSE BILL 478 | |
| 455 | 427 | ||
| 456 | - | (5) “Focus area” has the meaning stated in § 5–701 of the Economic | |
| 457 | - | Development Article. | |
| 458 | 428 | ||
| 459 | - | (6) “Focus area employee” means an individual who: | |
| 460 | 429 | ||
| 461 | - | ( | |
| 462 | - | ||
| 430 | + | (2) THE EFFECTIVENESS OF EACH ENTERPRISE ZONE IN ATTRACTING 1 | |
| 431 | + | BUSINESSES AND INCRE ASING EMPLOYMENT . 2 | |
| 463 | 432 | ||
| 464 | - | (ii) is employed by a business entity at least 35 hours each week for | |
| 465 | - | at least 12 months before or during the taxable year for which the entity claims a credit; | |
| 466 | - | LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 433 | + | [(b)] (E) On or before December 15 [of] each year, the Department [and the 3 | |
| 434 | + | Comptroller] shall submit to the Governor and, in accordance with § 2–1257 of the State 4 | |
| 435 | + | Government Article, the General Assembly a report outlining the findings of the 5 | |
| 436 | + | Department [and the Comptroller] and any other information of value in determining the 6 | |
| 437 | + | effectiveness of the tax credits provided under § 5–707(b) of this subtitle. 7 | |
| 467 | 438 | ||
| 468 | - | – 11 – | |
| 469 | - | (iii) spends at least [50 percent] 50% of the hours under item (ii) of | |
| 470 | - | this paragraph either in the focus area or on activities of the business entity resulting | |
| 471 | - | directly from its location in the focus area; | |
| 439 | + | 5–710. 8 | |
| 472 | 440 | ||
| 473 | - | (iv) is hired by the business entity after the later of: | |
| 441 | + | THIS SUBTITLE AND , EXCEPT AS PROVIDED I N § 5–707(D)(2) OF THIS 9 | |
| 442 | + | SUBTITLE, ELIGIBILITY FOR THE TAX CREDITS PROVIDED UNDER § 5–707(A) OF THIS 10 | |
| 443 | + | SUBTITLE SHALL TERMI NATE ON JANUARY 1, 2030. 11 | |
| 474 | 444 | ||
| 475 | - | 1. the date on which the focus area is designated; or | |
| 445 | + | SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 12 | |
| 446 | + | as follows: 13 | |
| 476 | 447 | ||
| 477 | - | 2. The date on which the business entity located in the focus | |
| 478 | - | area; and | |
| 448 | + | Article – Tax – General 14 | |
| 479 | 449 | ||
| 480 | - | (v) earns at least [150 percent] 120% of the [federal] STATE | |
| 481 | - | minimum wage. | |
| 450 | + | 10–702. 15 | |
| 482 | 451 | ||
| 483 | - | ( | |
| 452 | + | (a) (1) In this section the following words have the meanings indicated. 16 | |
| 484 | 453 | ||
| 485 | - | (i) is [a new employee] HIRED TO FILL A NEWL Y CREATED | |
| 486 | - | POSITION or [an employee rehired after being laid off for more than 1 year by a business | |
| 487 | - | entity], IF THE INDIVIDUAL IS AN ECONOMICALLY DISA DVANTAGED INDIVIDUAL , IS | |
| 488 | - | HIRED TO FILL A POSI TION PREVIOUSLY HELD BY ANOTHER ECONOMICALLY | |
| 489 | - | DISADVANTAGED INDIVI DUAL; | |
| 454 | + | (2) (i) “Business entity” means: 17 | |
| 490 | 455 | ||
| 491 | - | (ii) is employed by a business entity at least 35 hours each week for | |
| 492 | - | at least 6 months before or during the taxable year for which the entity claims a credit; | |
| 456 | + | 1. a person conducting or operating a trade or business; or 18 | |
| 493 | 457 | ||
| 494 | - | (iii) spends at least 50% of the hours under item (ii) of this paragraph, | |
| 495 | - | either in the enterprise zone or on activities of the business entity resulting directly from | |
| 496 | - | its location in the enterprise zone; | |
| 458 | + | 2. an organization that is exempt from taxation under § 19 | |
| 459 | + | 501(c)(3) or (4) of the Internal Revenue Code. 20 | |
| 497 | 460 | ||
| 498 | - | (iv) earns at least [150%] 120% of the [federal] STATE minimum | |
| 499 | - | wage; and | |
| 461 | + | (ii) “Business entity” does not include a person owning, operating, 21 | |
| 462 | + | developing, constructing, or rehabilitating property intended for use primarily as single or 22 | |
| 463 | + | multifamily residential property located within the enterprise zone. 23 | |
| 500 | 464 | ||
| 501 | - | (v) is hired by the business entity after the later of: | |
| 465 | + | (3) “Economically disadvantaged individual” means an individual who is 24 | |
| 466 | + | certified by provisions that the Maryland Department of Labor adopts as an individual who, 25 | |
| 467 | + | before becoming employed by a business entity in an enterprise zone: 26 | |
| 502 | 468 | ||
| 503 | - | 1. the date on which the enterprise zone is designated; or | |
| 469 | + | (i) was both unemployed for at least 30 consecutive days and 27 | |
| 470 | + | qualified to participate in training activities for the economically disadvantaged under the 28 | |
| 471 | + | federal Workforce Innovation and Opportunity Act or its successor; or 29 | |
| 504 | 472 | ||
| 505 | - | | |
| 506 | - | ||
| 473 | + | (ii) in the absence of an applicable federal act, met the criteria for an 30 | |
| 474 | + | economically disadvantaged individual that the Secretary of Labor sets. 31 HOUSE BILL 478 11 | |
| 507 | 475 | ||
| 508 | - | (b) (1) [Any] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, ANY | |
| 509 | - | business entity that is located in an enterprise zone and satisfies the requirements of § | |
| 510 | - | 5–707 of the Economic Development Article may claim a credit only against the State | |
| 511 | - | income tax for the wages specified in subsections (c) and (d) of this section that are paid in | |
| 512 | - | the taxable year for which the entity claims the credit. | |
| 513 | - | Ch. 732 2022 LAWS OF MARYLAND | |
| 514 | 476 | ||
| 515 | - | – 12 – | |
| 516 | - | (2) [A] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A business | |
| 517 | - | entity that is located in a focus area and satisfies the requirements of § 5–707 of the | |
| 518 | - | Economic Development Article may claim a credit only against the State income tax for the | |
| 519 | - | wages specified in subsection (e) of this section that are paid to a focus area employee in | |
| 520 | - | the taxable year for which the entity claims the credit. | |
| 521 | 477 | ||
| 522 | - | (3) An organization that is exempt from taxation under § 501(c)(3) or (4) of | |
| 523 | - | the Internal Revenue Code may apply the credit under this section as a credit against | |
| 524 | - | income tax due on unrelated business taxable income as provided under §§ 10–304 and | |
| 525 | - | 10–812 of this title. | |
| 478 | + | (4) (i) “Enterprise zone” has the meaning stated in § 5–701 of the 1 | |
| 479 | + | Economic Development Article. 2 | |
| 526 | 480 | ||
| 527 | - | (c) If a business entity does not claim an enhanced tax credit under subsection (e) | |
| 528 | - | of this section for a focus area employee, for the taxable year in which a business entity | |
| 529 | - | satisfies the requirements of § 5–707 or § 5–1406 of the Economic Development Article, a | |
| 530 | - | credit is allowed that equals: | |
| 481 | + | (ii) “Enterprise zone” includes a Regional Institution Strategic 3 | |
| 482 | + | Enterprise zone established under Title 5, Subtitle 14 of the Economic Development Article. 4 | |
| 531 | 483 | ||
| 532 | - | (1) up to $3,000 of the wages paid to each qualified employee who: | |
| 484 | + | (5) “Focus area” has the meaning stated in § 5–701 of the Economic 5 | |
| 485 | + | Development Article. 6 | |
| 533 | 486 | ||
| 534 | - | ( | |
| 487 | + | (6) “Focus area employee” means an individual who: 7 | |
| 535 | 488 | ||
| 536 | - | ( | |
| 537 | - | ||
| 489 | + | (i) is a new employee or an employee rehired after being laid off for 8 | |
| 490 | + | more than 1 year by a business entity; 9 | |
| 538 | 491 | ||
| 539 | - | (2) up to $1,000 of the wages paid to each qualified employee who: | |
| 492 | + | (ii) is employed by a business entity at least 35 hours each week for 10 | |
| 493 | + | at least 12 months before or during the taxable year for which the entity claims a credit; 11 | |
| 540 | 494 | ||
| 541 | - | (i) is not an economically disadvantaged individual; and | |
| 495 | + | (iii) spends at least [50 percent] 50% of the hours under item (ii) of 12 | |
| 496 | + | this paragraph either in the focus area or on activities of the business entity resulting 13 | |
| 497 | + | directly from its location in the focus area; 14 | |
| 542 | 498 | ||
| 543 | - | (ii) is not hired to replace an individual whom the business entity | |
| 544 | - | employed in that or any of the 3 preceding taxable years. | |
| 499 | + | (iv) is hired by the business entity after the later of: 15 | |
| 545 | 500 | ||
| 546 | - | (d) (1) If a business entity does not claim an enhanced tax credit under | |
| 547 | - | subsection (e) of this section for a focus area employee, for each taxable year after the | |
| 548 | - | taxable year described in subsection (c) of this section, while the area is designated an | |
| 549 | - | enterprise zone, a credit is allowed that equals: | |
| 501 | + | 1. the date on which the focus area is designated; or 16 | |
| 550 | 502 | ||
| 551 | - | (i) up to $3,000 of the wages paid to each qualified employee who: | |
| 503 | + | 2. The date on which the business entity located in the focus 17 | |
| 504 | + | area; and 18 | |
| 552 | 505 | ||
| 553 | - | 1. is an economically disadvantaged individual; | |
| 506 | + | (v) earns at least [150 percent] 120% of the [federal] STATE 19 | |
| 507 | + | minimum wage. 20 | |
| 554 | 508 | ||
| 555 | - | 2. became a qualified employee during the taxable year to | |
| 556 | - | which the credit applies; and | |
| 509 | + | (7) “Qualified employee” means an individual who: 21 | |
| 557 | 510 | ||
| 558 | - | 3. is not hired to replace an individual whom the business | |
| 559 | - | entity employed in that or any of the 3 preceding taxable years; | |
| 560 | - | LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 511 | + | (i) is [a new employee] HIRED TO FILL A NEWL Y CREATED 22 | |
| 512 | + | POSITION or [an employee rehired after being laid off for more than 1 year by a business 23 | |
| 513 | + | entity], IF THE INDIVIDUAL IS AN ECONOMICALLY DISA DVANTAGED INDIVIDUAL , IS 24 | |
| 514 | + | HIRED TO FILL A POSI TION PREVIOUSLY HELD BY ANOTHER ECONOMICALLY 25 | |
| 515 | + | DISADVANTAGED INDIVI DUAL; 26 | |
| 561 | 516 | ||
| 562 | - | – 13 – | |
| 563 | - | (ii) up to $2,000 of the wages paid to each qualified employee who is | |
| 564 | - | an economically disadvantaged individual, if the business entity received a credit under | |
| 565 | - | subsection (c)(1) of this section for the qualified employee in the immediately preceding | |
| 566 | - | taxable year; and | |
| 517 | + | (ii) is employed by a business entity at least 35 hours each week for 27 | |
| 518 | + | at least 6 months before or during the taxable year for which the entity claims a credit; 28 | |
| 567 | 519 | ||
| 568 | - | (iii) | |
| 569 | - | ||
| 570 | - | ||
| 520 | + | (iii) spends at least 50% of the hours under item (ii) of this paragraph, 29 | |
| 521 | + | either in the enterprise zone or on activities of the business entity resulting directly from 30 | |
| 522 | + | its location in the enterprise zone; 31 12 HOUSE BILL 478 | |
| 571 | 523 | ||
| 572 | - | 1. is an economically disadvantaged individual for whom the | |
| 573 | - | business entity received a credit under subsection (c)(1) of this section or item (i) of this | |
| 574 | - | paragraph and a credit under item (ii) of this paragraph in the 2 immediately preceding | |
| 575 | - | taxable years; or | |
| 576 | 524 | ||
| 577 | - | 2. is not an economically disadvantaged individual but | |
| 578 | - | became a qualified employee during the taxable year to which the credit applies. | |
| 579 | 525 | ||
| 580 | - | (2) A business entity that hires a qualified employee to replace another | |
| 581 | - | qualified employee for whom the business entity received a credit under subsection (c)(1) of | |
| 582 | - | this section and paragraph (1)(ii) of this subsection in the immediately preceding taxable | |
| 583 | - | year may treat the new qualified employee as the replacement for the other qualified | |
| 584 | - | employee to determine any credit that may be available to the business entity under | |
| 585 | - | paragraph (1)(ii) or (iii) of this subsection. | |
| 526 | + | (iv) earns at least [150%] 120% of the [federal] STATE minimum 1 | |
| 527 | + | wage; and 2 | |
| 586 | 528 | ||
| 587 | - | (e) (1) For the taxable year in which a business entity satisfies the | |
| 588 | - | requirements of §§ 5–706 and 5–707 or § 5–1406 of the Economic Development Article, a | |
| 589 | - | credit is allowed that equals: | |
| 529 | + | (v) is hired by the business entity after the later of: 3 | |
| 590 | 530 | ||
| 591 | - | | |
| 531 | + | 1. the date on which the enterprise zone is designated; or 4 | |
| 592 | 532 | ||
| 593 | - | 1. is an economically disadvantaged individual; and | |
| 533 | + | 2. the date on which the business entity locates in the 5 | |
| 534 | + | enterprise zone. 6 | |
| 594 | 535 | ||
| 595 | - | 2. is not hired to replace an individual whom the business | |
| 596 | - | entity employed in that year or any of the 3 preceding taxable years; and | |
| 536 | + | (b) (1) [Any] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, ANY 7 | |
| 537 | + | business entity that is located in an enterprise zone and satisfies the requirements of § 8 | |
| 538 | + | 5–707 of the Economic Development Article may claim a credit only against the State 9 | |
| 539 | + | income tax for the wages specified in subsections (c) and (d) of this section that are paid in 10 | |
| 540 | + | the taxable year for which the entity claims the credit. 11 | |
| 597 | 541 | ||
| 598 | - | (ii) up to $1,500 of the wages paid to each focus area employee who: | |
| 542 | + | (2) [A] SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, A business 12 | |
| 543 | + | entity that is located in a focus area and satisfies the requirements of § 5–707 of the 13 | |
| 544 | + | Economic Development Article may claim a credit only against the State income tax for the 14 | |
| 545 | + | wages specified in subsection (e) of this section that are paid to a focus area employee in 15 | |
| 546 | + | the taxable year for which the entity claims the credit. 16 | |
| 599 | 547 | ||
| 600 | - | 1. is not an economically disadvantaged individual; and | |
| 548 | + | (3) An organization that is exempt from taxation under § 501(c)(3) or (4) of 17 | |
| 549 | + | the Internal Revenue Code may apply the credit under this section as a credit against 18 | |
| 550 | + | income tax due on unrelated business taxable income as provided under §§ 10–304 and 19 | |
| 551 | + | 10–812 of this title. 20 | |
| 601 | 552 | ||
| 602 | - | 2. is not hired to replace an individual whom the business | |
| 603 | - | entity employed in that year or any of the 3 preceding taxable years. | |
| 553 | + | (c) If a business entity does not claim an enhanced tax credit under subsection (e) 21 | |
| 554 | + | of this section for a focus area employee, for the taxable year in which a business entity 22 | |
| 555 | + | satisfies the requirements of § 5–707 or § 5–1406 of the Economic Development Article, a 23 | |
| 556 | + | credit is allowed that equals: 24 | |
| 604 | 557 | ||
| 605 | - | (2) For each taxable year after the taxable year described in paragraph (1) | |
| 606 | - | of this subsection, while the area is designated a focus area, a credit is allowed that equals: | |
| 558 | + | (1) up to $3,000 of the wages paid to each qualified employee who: 25 | |
| 607 | 559 | ||
| 608 | - | (i) | |
| 560 | + | (i) is an economically disadvantaged individual; and 26 | |
| 609 | 561 | ||
| 610 | - | – 14 – | |
| 562 | + | (ii) is not hired to replace an individual whom the business entity 27 | |
| 563 | + | employed in that or any of the 3 preceding taxable years; and 28 | |
| 611 | 564 | ||
| 612 | - | 1 | |
| 565 | + | (2) up to $1,000 of the wages paid to each qualified employee who: 29 | |
| 613 | 566 | ||
| 614 | - | 2. became a focus area employee during the taxable year to | |
| 615 | - | which the credit applies; and | |
| 567 | + | (i) is not an economically disadvantaged individual; and 30 | |
| 616 | 568 | ||
| 617 | - | | |
| 618 | - | ||
| 569 | + | (ii) is not hired to replace an individual whom the business entity 31 | |
| 570 | + | employed in that or any of the 3 preceding taxable years. 32 HOUSE BILL 478 13 | |
| 619 | 571 | ||
| 620 | - | (ii) up to $3,000 of the wages paid to each focus area employee who | |
| 621 | - | is an economically disadvantaged individual, if the business entity received a credit under | |
| 622 | - | paragraph (1)(i) of this subsection for the focus area employee in the immediately preceding | |
| 623 | - | taxable year; and | |
| 624 | 572 | ||
| 625 | - | (iii) up to $1,500 of the wages paid to each focus area employee who | |
| 626 | - | is not hired to replace an individual whom the business entity employed in that year or any | |
| 627 | - | of the 3 preceding taxable years if the focus area employee: | |
| 628 | 573 | ||
| 629 | - | 1. is an economically disadvantaged individual for whom the | |
| 630 | - | business entity received a credit under item (ii) of this paragraph in the 2 immediately | |
| 631 | - | preceding taxable years and under: | |
| 574 | + | (d) (1) If a business entity does not claim an enhanced tax credit under 1 | |
| 575 | + | subsection (e) of this section for a focus area employee, for each taxable year after the 2 | |
| 576 | + | taxable year described in subsection (c) of this section, while the area is designated an 3 | |
| 577 | + | enterprise zone, a credit is allowed that equals: 4 | |
| 632 | 578 | ||
| 633 | - | | |
| 579 | + | (i) up to $3,000 of the wages paid to each qualified employee who: 5 | |
| 634 | 580 | ||
| 635 | - | | |
| 581 | + | 1. is an economically disadvantaged individual; 6 | |
| 636 | 582 | ||
| 637 | - | 2. | |
| 638 | - | ||
| 583 | + | 2. became a qualified employee during the taxable year to 7 | |
| 584 | + | which the credit applies; and 8 | |
| 639 | 585 | ||
| 640 | - | (3) A business entity that hires a focus area employee to replace another | |
| 641 | - | focus area employee for whom the business entity received a credit under paragraph (1)(i) | |
| 642 | - | of this subsection and paragraph (2)(ii) of this subsection in the immediately preceding | |
| 643 | - | taxable year may treat the focus area employee as the replacement for the other focus area | |
| 644 | - | employee to determine any credit that may be available to the business entity under | |
| 645 | - | paragraph (2)(ii) or (iii) of this subsection. | |
| 586 | + | 3. is not hired to replace an individual whom the business 9 | |
| 587 | + | entity employed in that or any of the 3 preceding taxable years; 10 | |
| 646 | 588 | ||
| 647 | - | (F) (1) THE CREDIT ALLOWED UN DER THIS SECTION SHA LL BE CLAIMED | |
| 648 | - | ON A FIRST–COME, FIRST–SERVED BASIS. | |
| 589 | + | (ii) up to $2,000 of the wages paid to each qualified employee who is 11 | |
| 590 | + | an economically disadvantaged individual, if the business entity received a credit under 12 | |
| 591 | + | subsection (c)(1) of this section for the qualified employee in the immediately preceding 13 | |
| 592 | + | taxable year; and 14 | |
| 649 | 593 | ||
| 650 | - | (2) FOR ANY TAXABLE YEAR : | |
| 594 | + | (iii) up to $1,000 of the wages paid to each qualified employee who is 15 | |
| 595 | + | not hired to replace an individual whom the business entity employed in that or any of the 16 | |
| 596 | + | 3 preceding taxable years if the qualified employee: 17 | |
| 651 | 597 | ||
| 652 | - | (I) THE CREDIT ALLOWED U NDER THIS SECTION MAY NOT | |
| 653 | - | EXCEED $250,000; AND | |
| 654 | - | LAWRENCE J. HOGAN, JR., Governor Ch. 732 | |
| 598 | + | 1. is an economically disadvantaged individual for whom the 18 | |
| 599 | + | business entity received a credit under subsection (c)(1) of this section or item (i) of this 19 | |
| 600 | + | paragraph and a credit under item (ii) of this paragraph in the 2 immediately preceding 20 | |
| 601 | + | taxable years; or 21 | |
| 655 | 602 | ||
| 656 | - | – 15 – | |
| 657 | - | (II) THE TOTAL AMOUNT OF CREDITS CLAIMED BY B USINESS | |
| 658 | - | ENTITIES MAY NOT EXC EED $2,000,000. | |
| 603 | + | 2. is not an economically disadvantaged individual but 22 | |
| 604 | + | became a qualified employee during the taxable year to which the credit applies. 23 | |
| 659 | 605 | ||
| 660 | - | [(f)] (G) If the credit allowed under this section in any taxable year exceeds the | |
| 661 | - | State income tax for that taxable year, a business entity may apply the excess as a credit | |
| 662 | - | against the State income tax for succeeding taxable years until the earlier of: | |
| 606 | + | (2) A business entity that hires a qualified employee to replace another 24 | |
| 607 | + | qualified employee for whom the business entity received a credit under subsection (c)(1) of 25 | |
| 608 | + | this section and paragraph (1)(ii) of this subsection in the immediately preceding taxable 26 | |
| 609 | + | year may treat the new qualified employee as the replacement for the other qualified 27 | |
| 610 | + | employee to determine any credit that may be available to the business entity under 28 | |
| 611 | + | paragraph (1)(ii) or (iii) of this subsection. 29 | |
| 663 | 612 | ||
| 664 | - | (1) the full amount of the excess is used; or | |
| 613 | + | (e) (1) For the taxable year in which a business entity satisfies the 30 | |
| 614 | + | requirements of §§ 5–706 and 5–707 or § 5–1406 of the Economic Development Article, a 31 | |
| 615 | + | credit is allowed that equals: 32 | |
| 665 | 616 | ||
| 666 | - | (2) the expiration of the 5th taxable year from the date on which the | |
| 667 | - | business entity hired the qualified employee to whom the credit first applies. | |
| 617 | + | (i) up to $4,500 of the wages paid to each focus area employee who: 33 | |
| 668 | 618 | ||
| 669 | - | [(g)] (H) If a credit is claimed under this section, the claimant must make the | |
| 670 | - | addition required in § 10–205, § 10–206, or § 10–306 of this title. | |
| 619 | + | 1. is an economically disadvantaged individual; and 34 14 HOUSE BILL 478 | |
| 671 | 620 | ||
| 672 | - | SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read | |
| 673 | - | as follows: | |
| 674 | 621 | ||
| 675 | - | Article – Tax – Property | |
| 676 | 622 | ||
| 677 | - | 9–103. | |
| 623 | + | 2. is not hired to replace an individual whom the business 1 | |
| 624 | + | entity employed in that year or any of the 3 preceding taxable years; and 2 | |
| 678 | 625 | ||
| 679 | - | (b) (1) The governing body of a county or of a municipal corporation shall grant | |
| 680 | - | a tax credit under this section against the property tax imposed on the eligible assessment | |
| 681 | - | of qualified property. | |
| 626 | + | (ii) up to $1,500 of the wages paid to each focus area employee who: 3 | |
| 682 | 627 | ||
| 683 | - | (d) (1) [The] SUBJECT TO THE LIMITA TION UNDER PARAGRAPH (5) OF | |
| 684 | - | THIS SUBSECTION , THE appropriate governing body shall calculate the amount of the tax | |
| 685 | - | credit under this section equal to a percentage of the amount of property tax imposed on | |
| 686 | - | the eligible assessment of the qualified property, as follows: | |
| 628 | + | 1. is not an economically disadvantaged individual; and 4 | |
| 687 | 629 | ||
| 688 | - | | |
| 689 | - | in | |
| 630 | + | 2. is not hired to replace an individual whom the business 5 | |
| 631 | + | entity employed in that year or any of the 3 preceding taxable years. 6 | |
| 690 | 632 | ||
| 691 | - | (ii) 70% in the 6th taxable year; | |
| 633 | + | (2) For each taxable year after the taxable year described in paragraph (1) 7 | |
| 634 | + | of this subsection, while the area is designated a focus area, a credit is allowed that equals: 8 | |
| 692 | 635 | ||
| 693 | - | ( | |
| 636 | + | (i) up to $4,500 of the wages paid to each focus area employee who: 9 | |
| 694 | 637 | ||
| 695 | - | | |
| 638 | + | 1. is an economically disadvantaged individual; 10 | |
| 696 | 639 | ||
| 697 | - | (v) 40% in the 9th taxable year; and | |
| 640 | + | 2. became a focus area employee during the taxable year to 11 | |
| 641 | + | which the credit applies; and 12 | |
| 698 | 642 | ||
| 699 | - | | |
| 700 | - | ||
| 643 | + | 3. is not hired to replace an individual whom the business 13 | |
| 644 | + | entity employed in that year or any of the 3 preceding taxable years; 14 | |
| 701 | 645 | ||
| 702 | - | ||
| 703 | - | ||
| 704 | - | ||
| 705 | - | ||
| 646 | + | (ii) up to $3,000 of the wages paid to each focus area employee who 15 | |
| 647 | + | is an economically disadvantaged individual, if the business entity received a credit under 16 | |
| 648 | + | paragraph (1)(i) of this subsection for the focus area employee in the immediately preceding 17 | |
| 649 | + | taxable year; and 18 | |
| 706 | 650 | ||
| 707 | - | ( | |
| 708 | - | ||
| 709 | - | ||
| 651 | + | (iii) up to $1,500 of the wages paid to each focus area employee who 19 | |
| 652 | + | is not hired to replace an individual whom the business entity employed in that year or any 20 | |
| 653 | + | of the 3 preceding taxable years if the focus area employee: 21 | |
| 710 | 654 | ||
| 711 | - | (4) For qualified property located in a focus area, the appropriate governing | |
| 712 | - | body shall calculate the amount of the tax credit under this section equal to 80% of the | |
| 713 | - | amount of property tax imposed on the eligible assessment of the qualified property for | |
| 714 | - | each of the 10 taxable years following the calendar year in which the property initially | |
| 715 | - | becomes a qualified property. | |
| 655 | + | 1. is an economically disadvantaged individual for whom the 22 | |
| 656 | + | business entity received a credit under item (ii) of this paragraph in the 2 immediately 23 | |
| 657 | + | preceding taxable years and under: 24 | |
| 716 | 658 | ||
| 717 | - | (5) FOR ANY TAXABLE YEAR, THE AMOUNT OF A PROP ERTY TAX | |
| 718 | - | CREDIT GRANTED UNDER THIS SECTION TO A QU ALIFIED PROPERTY MAY NOT | |
| 719 | - | EXCEED $500,000. | |
| 659 | + | A. paragraph (1)(i) of this subsection; or 25 | |
| 720 | 660 | ||
| 721 | - | SECTION 4. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall | |
| 722 | - | be applicable to all taxable years beginning after December 31, 2021. | |
| 661 | + | B. item (i) of this paragraph; or 26 | |
| 723 | 662 | ||
| 724 | - | | |
| 725 | - | ||
| 663 | + | 2. is not an economically disadvantaged individual but 27 | |
| 664 | + | became a focus area employee during the taxable year to which the credit applies. 28 | |
| 726 | 665 | ||
| 727 | - | SECTION 6. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect | |
| 728 | - | June 1, 2022. | |
| 666 | + | (3) A business entity that hires a focus area employee to replace another 29 | |
| 667 | + | focus area employee for whom the business entity received a credit under paragraph (1)(i) 30 | |
| 668 | + | of this subsection and paragraph (2)(ii) of this subsection in the immediately preceding 31 HOUSE BILL 478 15 | |
| 729 | 669 | ||
| 730 | - | Enacted under Article II, § 17(c) of the Maryland Constitution, May 29, 2022. | |
| 670 | + | ||
| 671 | + | taxable year may treat the focus area employee as the replacement for the other focus area 1 | |
| 672 | + | employee to determine any credit that may be available to the business entity under 2 | |
| 673 | + | paragraph (2)(ii) or (iii) of this subsection. 3 | |
| 674 | + | ||
| 675 | + | (F) (1) THE CREDIT ALLOWED UN DER THIS SECTION SHALL BE CLAIME D 4 | |
| 676 | + | ON A FIRST–COME, FIRST–SERVED BASIS. 5 | |
| 677 | + | ||
| 678 | + | (2) FOR ANY TAXABLE YEAR : 6 | |
| 679 | + | ||
| 680 | + | (I) THE CREDIT ALLOWED U NDER THIS SECTION MA Y NOT 7 | |
| 681 | + | EXCEED $250,000; AND 8 | |
| 682 | + | ||
| 683 | + | (II) THE TOTAL AMOUNT OF CREDITS CLAIMED BY B USINESS 9 | |
| 684 | + | ENTITIES MAY NOT EXC EED $2,000,000. 10 | |
| 685 | + | ||
| 686 | + | [(f)] (G) If the credit allowed under this section in any taxable year exceeds the 11 | |
| 687 | + | State income tax for that taxable year, a business entity may apply the excess as a credit 12 | |
| 688 | + | against the State income tax for succeeding taxable years until the earlier of: 13 | |
| 689 | + | ||
| 690 | + | (1) the full amount of the excess is used; or 14 | |
| 691 | + | ||
| 692 | + | (2) the expiration of the 5th taxable year from the date on which the 15 | |
| 693 | + | business entity hired the qualified employee to whom the credit first applies. 16 | |
| 694 | + | ||
| 695 | + | [(g)] (H) If a credit is claimed under this section, the claimant must make the 17 | |
| 696 | + | addition required in § 10–205, § 10–206, or § 10–306 of this title. 18 | |
| 697 | + | ||
| 698 | + | SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 19 | |
| 699 | + | as follows: 20 | |
| 700 | + | ||
| 701 | + | Article – Tax – Property 21 | |
| 702 | + | ||
| 703 | + | 9–103. 22 | |
| 704 | + | ||
| 705 | + | (b) (1) The governing body of a county or of a municipal corporation shall grant 23 | |
| 706 | + | a tax credit under this section against the property tax imposed on the eligible assessment 24 | |
| 707 | + | of qualified property. 25 | |
| 708 | + | ||
| 709 | + | (d) (1) [The] SUBJECT TO THE LIMITA TION UNDER PARAGRAPH (5) OF 26 | |
| 710 | + | THIS SUBSECTION , THE appropriate governing body shall calculate the amount of the tax 27 | |
| 711 | + | credit under this section equal to a percentage of the amount of property tax imposed on 28 | |
| 712 | + | the eligible assessment of the qualified property, as follows: 29 | |
| 713 | + | ||
| 714 | + | (i) 80% in each of the 1st 5 taxable years following the calendar year 30 | |
| 715 | + | in which the property initially becomes a qualified property; 31 | |
| 716 | + | 16 HOUSE BILL 478 | |
| 717 | + | ||
| 718 | + | ||
| 719 | + | (ii) 70% in the 6th taxable year; 1 | |
| 720 | + | ||
| 721 | + | (iii) 60% in the 7th taxable year; 2 | |
| 722 | + | ||
| 723 | + | (iv) 50% in the 8th taxable year; 3 | |
| 724 | + | ||
| 725 | + | (v) 40% in the 9th taxable year; and 4 | |
| 726 | + | ||
| 727 | + | (vi) 30% in the 10th taxable year. 5 | |
| 728 | + | ||
| 729 | + | (2) The Department shall allocate the eligible assessment to the 6 | |
| 730 | + | nonresidential part of the qualified property at the same percentage as the square footage 7 | |
| 731 | + | of the nonresidential part is to the total square footage of the building. 8 | |
| 732 | + | ||
| 733 | + | (3) For purposes of calculating the amount of the credit allowed under this 9 | |
| 734 | + | section, the amount of property tax imposed on the eligible assessment shall be calculated 10 | |
| 735 | + | without reduction for any credits allowed under this title. 11 | |
| 736 | + | ||
| 737 | + | (4) For qualified property located in a focus area, the appropriate governing 12 | |
| 738 | + | body shall calculate the amount of the tax credit under this section equal to 80% of the 13 | |
| 739 | + | amount of property tax imposed on the eligible assessment of the qualified property for 14 | |
| 740 | + | each of the 10 taxable years following the calendar year in which the property initially 15 | |
| 741 | + | becomes a qualified property. 16 | |
| 742 | + | ||
| 743 | + | (5) FOR ANY TAXABLE YEAR , THE AMOUNT OF A PROP ERTY TAX 17 | |
| 744 | + | CREDIT GRANTED UNDER THIS SECTION TO A QU ALIFIED PROPERTY MAY NOT 18 | |
| 745 | + | EXCEED $500,000. 19 | |
| 746 | + | ||
| 747 | + | SECTION 4. 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall 20 | |
| 748 | + | be applicable to all taxable years beginning after December 31, 2021. 21 | |
| 749 | + | ||
| 750 | + | SECTION 5. AND BE IT FURTHER ENACTED, That Section 3 of this Act shall be 22 | |
| 751 | + | applicable to all taxable years beginning after June 30, 2022. 23 | |
| 752 | + | ||
| 753 | + | SECTION 6. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 24 | |
| 754 | + | June 1, 2022. 25 | |
| 755 | + | ||
| 756 | + | ||
| 757 | + | ||
| 758 | + | ||
| 759 | + |