Maryland 2024 Regular Session

Maryland House Bill HB744

Introduced
1/31/24  

Caption

Income Tax - Biotechnology Investment Incentive Tax Credit Program - Pass-Through Entities

Impact

The implications of HB 744 could significantly influence state tax law as it modifies the allocation of tax credits within the Biotechnology Investment Incentive Tax Credit Program. The bill stipulates that pass-through entities, such as partnerships or LLCs, can distribute tax credits among their members, thus allowing for greater flexibility and potentially increasing participation in biotechnology investments. This expansion could lead to increased funds flowing into biotech firms, fostering innovation and job creation in the sector.

Summary

House Bill 744 aims to enhance the Biotechnology Investment Incentive Tax Credit Program by allowing pass-through entities to claim and allocate tax credits or refunds for investments made in qualified Maryland biotechnology companies. This move is intended to stimulate investment in the biotechnology sector, which is crucial for economic growth and innovation within the state. By broadening the scope of qualified investors who can benefit from tax incentives to include pass-through entities, the bill seeks to entice more investors to engage with and support biotech initiatives in Maryland.

Contention

While supporters of HB 744 are likely to argue that this bill will fuel economic development and provide much-needed support to the biotechnology sector, there may be concerns regarding its implementation and the potential for misuse of tax credits. Critics might raise questions about how these credits are allocated among members of pass-through entities and the overall effectiveness of the program in achieving its intended economic benefits. There could also be discussions about equity and whether such incentives disproportionately favor larger investment groups over smaller, individual investors.

Companion Bills

MD SB702

Crossfiled Income Tax - Biotechnology Investment Incentive Tax Credit Program - Pass-Through Entities

Similar Bills

No similar bills found.