MD
Maryland Senate Bill SB721

Maryland 2023 Regular Session

Maryland Senate Bill SB721 Compare Versions

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1- WES MOORE, Governor Ch. 438
21
3-– 1 –
4-Chapter 438
5-(Senate Bill 721)
62
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+ *sb0721*
89
9-Income Tax – Credit for Federal Security Clearance Costs – Extension
10-Alterations
10+SENATE BILL 721
11+Q3 3lr0010
1112
12-FOR the purpose of extending the termination date for reestablishing for a certain period
13-of taxable years a credit against the Maryland income tax for certain costs incurred
14-by employers to obtain federal security clearances for employees, rent certain spaces,
15-and construct or renovate certain sensitive compartmented information facilities in
16-the State; limiting eligibility for the income tax credit to individuals or corporations
17-who employ not more than a certain number of employees; and generally relating to
18-an income tax credit for costs related to federal security clearances.
13+By: Chair, Budget and Taxation Committee (By Request – Departmental –
14+Commerce)
15+Introduced and read first time: February 6, 2023
16+Assigned to: Budget and Taxation
17+Committee Report: Favorable with amendments
18+Senate action: Adopted
19+Read second time: March 11, 2023
1920
20-BY repealing and reenacting, without amendments,
21- Article – Tax – General
22- Section 10–732(a)
23- Annotated Code of Maryland
24- (2022 Replacement Volume)
21+CHAPTER ______
2522
26-BY repealing and reenacting, with amendments,
27- Article – Tax – General
28- Section 10–732(b)
29- Annotated Code of Maryland
30- (2022 Replacement Volume)
23+AN ACT concerning 1
3124
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
25+Income Tax – Credit for Federal Security Clearance Costs – Extension 2
26+Alterations 3
3427
35-Article – Tax – General
28+FOR the purpose of extending the termination date for reestablishing for a certain period 4
29+of taxable years a credit against the Maryland income tax for certain costs incurred 5
30+by employers to obtain federal security clearances for employees, rent certain spaces, 6
31+and construct or renovate certain sensitive compartmented information facilities in 7
32+the State; limiting eligibility for the income tax credit to individuals or corporations 8
33+who employ not more than a certain number of employees; and generally relating to 9
34+an income tax credit for costs related to federal security clearances. 10
3635
37-10–732.
36+BY repealing and reenacting, without amendments, 11
37+ Article – Tax – General 12
38+ Section 10–732(a) 13
39+ Annotated Code of Maryland 14
40+ (2022 Replacement Volume) 15
3841
39- (a) (1) In this section the following words have the meanings indicated.
42+BY repealing and reenacting, with amendments, 16
43+ Article – Tax – General 17
44+ Section 10–732(b) 18
45+ Annotated Code of Maryland 19
46+ (2022 Replacement Volume) 20
47+ 2 SENATE BILL 721
4048
41- (2) “Costs” means the costs to an individual or corporation for:
4249
43- (i) security clearance administrative expenses incurred with regard
44-to an employee in the State including, but not limited to:
50+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
51+That the Laws of Maryland read as follows: 2
4552
46- 1. processing application requests for clearances for
47-employees in the State;
48- Ch. 438 2023 LAWS OF MARYLAND
53+Article – Tax – General 3
4954
50-– 2 –
51- 2. maintaining, upgrading, or installing computer systems in
52-the State required to obtain federal security clearances; and
55+10–732. 4
5356
54- 3. training employees in the State to administer the
55-application process; and
57+ (a) (1) In this section the following words have the meanings indicated. 5
5658
57- (ii) construction and equipment costs incurred to construct or
58-renovate a sensitive compartmented information facility (“SCIF”) located in the State as
59-required by the federal government.
59+ (2) “Costs” means the costs to an individual or corporation for: 6
6060
61- (3) “Department” means the Department of Commerce.
61+ (i) security clearance administrative expenses incurred with regard 7
62+to an employee in the State including, but not limited to: 8
6263
63- (4) “Secretary” means the Secretary of Commerce.
64+ 1. processing application requests for clearances for 9
65+employees in the State; 10
6466
65- (5) “Small business” has the meaning stated in § 7–218 of this article.
67+ 2. maintaining, upgrading, or installing computer systems in 11
68+the State required to obtain federal security clearances; and 12
6669
67- (b) (1) Subject to the limitations of this section, for a taxable year beginning
68-after December 31, 2012 2022, but before January 1, [2022] 2028, an individual or a
69-corporation THAT EMPLOYS NOT MOR E THAN 500 EMPLOYEES may claim credits
70-against the State income tax for:
70+ 3. training employees in the State to administer the 13
71+application process; and 14
7172
72- (i) security clearance administrative expenses, not to exceed
73-$200,000;
73+ (ii) construction and equipment costs incurred to construct or 15
74+renovate a sensitive compartmented information facility (“SCIF”) located in the State as 16
75+required by the federal government. 17
7476
75- (ii) expenses incurred for rental payments owed during the first year
76-of a rental agreement for spaces leased in the State if the individual or corporation is a
77-small business that performs security–based contracting, not to exceed $200,000; and
77+ (3) “Department” means the Department of Commerce. 18
7878
79- (iii) subject to paragraph (2) of this subsection, construction and
80-equipment costs incurred to construct or renovate a single SCIF in an amount equal to the
81-lesser of 50% of the costs or $200,000.
79+ (4) “Secretary” means the Secretary of Commerce. 19
8280
83- (2) The total amount of construction and equipment costs incurred to
84-construct or renovate multiple SCIFs for which an individual or a corporation is eligible to
85-claim as a credit against the State income tax is $500,000.
81+ (5) “Small business” has the meaning stated in § 7–218 of this article. 20
8682
87- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
88-1, 2023, and shall be applicable to all taxable years beginning after December 31, 2021
89-2022.
83+ (b) (1) Subject to the limitations of this section, for a taxable year beginning 21
84+after December 31, 2012 2022, but before January 1, [2022] 2028, an individual or a 22
85+corporation THAT EMPLOYS NOT MORE THA N 500 EMPLOYEES may claim credits 23
86+against the State income tax for: 24
9087
91-Approved by the Governor, May 8, 2023.
88+ (i) security clearance administrative expenses, not to exceed 25
89+$200,000; 26
90+
91+ (ii) expenses incurred for rental payments owed during the first year 27
92+of a rental agreement for spaces leased in the State if the individual or corporation is a 28
93+small business that performs security–based contracting, not to exceed $200,000; and 29
94+ SENATE BILL 721 3
95+
96+
97+ (iii) subject to paragraph (2) of this subsection, construction and 1
98+equipment costs incurred to construct or renovate a single SCIF in an amount equal to the 2
99+lesser of 50% of the costs or $200,000. 3
100+
101+ (2) The total amount of construction and equipment costs incurred to 4
102+construct or renovate multiple SCIFs for which an individual or a corporation is eligible to 5
103+claim as a credit against the State income tax is $500,000. 6
104+
105+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7
106+1, 2023, and shall be applicable to all taxable years beginning after December 31, 2021 8
107+2022. 9
108+
109+
110+
111+
112+Approved:
113+________________________________________________________________________________
114+ Governor.
115+________________________________________________________________________________
116+ President of the Senate.
117+________________________________________________________________________________
118+ Speaker of the House of Delegates.