Maryland 2024 Regular Session

Maryland Senate Bill SB702 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0702
6	6
7	7	SENATE BILL 702
8	8	Q3 4lr2867
9	9	CF 4lr2827
10	10	By: Senator Beidle
11	11	Introduced and read first time: January 30, 2024
12	12	Assigned to: Budget and Taxation
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Biotechnology Investment Incentive Tax Credit Program – 2
19	19	Pass–Through Entities 3
20	20
21	21	FOR the purpose of allowing a qualified investor that is a pass–through entity that pays a 4
22	22	certain income tax on behalf of its members to receive and allocate in any manner a 5
23	23	credit or refund of a credit under the Biotechnology Investment Incentive Tax Credit 6
24	24	Program; and generally relating to the Biotechnology Investment Incentive Tax 7
25	25	Credit Program. 8
26	26
27	27	BY repealing and reenacting, without amendments, 9
28	28	Article – Tax – General 10
29	29	Section 10–725(a)(1) and (6) and (b)(2) 11
30	30	Annotated Code of Maryland 12
31	31	(2022 Replacement Volume and 2023 Supplement) 13
32	32
33	33	BY adding to 14
34	34	Article – Tax – General 15
35	35	Section 10–725(b)(5) 16
36	36	Annotated Code of Maryland 17
37	37	(2022 Replacement Volume and 2023 Supplement) 18
38	38
39	39	BY repealing and reenacting, with amendments, 19
40	40	Article – Tax – General 20
41	41	Section 10–725(d)(3) 21
42	42	Annotated Code of Maryland 22
43	43	(2022 Replacement Volume and 2023 Supplement) 23
44	44
45	45	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMB LY OF MARYLAND, 24
46	46	That the Laws of Maryland read as follows: 25
47	47
48	48	Article – Tax – General 26 2 SENATE BILL 702
49	49
50	50
51	51
52	52	10–725. 1
53	53
54	54	(a) (1) In this section the following words have the meanings indicated. 2
55	55
56	56	(6) (i) “Qualified investor” means any individual or entity that invests 3
57	57	at least $25,000 in a qualified Maryland biotechnology company and that is required to file 4
58	58	an income tax return in any jurisdiction. 5
59	59
60	60	(ii) “Qualified investor” does not include: 6
61	61
62	62	1. a qualified pension plan, individual retirement account, or 7
63	63	other qualified retirement plan under the Employee Retirement Income Security Act of 8
64	64	1974, as amended, or fiduciaries or custodians under such plans, or similar tax–favored 9
65	65	plans or entities under the laws of other countries; or 10
66	66
67	67	2. a founder or current employee of the qualified Maryland 11
68	68	biotechnology company, if the company has been in active business for more than 5 years. 12
69	69
70	70	(b) (2) Subject to paragraphs (3) and (4) of this subsection and subsections (d) 13
71	71	and (e) of this section, for the taxable year in which an investment in a qualified Maryland 14
72	72	biotechnology company is made, a qualified investor may claim a credit against the State 15
73	73	income tax in an amount equal to the amount of tax credit stated in the final credit 16
74	74	certificate approved by the Secretary for the investment as provided under this section. 17
75	75
76	76	(5) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A CREDIT 18
77	77	UNDER PARAGRAPH (2) OF THIS SUBSECTION I S A PASS–THROUGH ENTITY THAT 19
78	78	PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 20
79	79	ALL MEMBERS OF THE PASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 21
80	80	CLAIM AND ALLOCATE T HE CREDIT AMONG THE MEMBERS OF THE PASS –THROUGH 22
81	81	ENTITY IN ANY MANNER . 23
82	82
83	83	(d) (3) (I) If the tax credit allowed under this section in any taxable year 24
84	84	exceeds the total tax otherwise payable by the qualified investor for that taxable year, the 25
85	85	qualified investor may claim a refund in the amount of the excess. 26
86	86
87	87	(II) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A REFUND 27
88	88	UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT 28
89	89	PAYS THE INCOME TAX I MPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 29
90	90	ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 30
91	91	CLAIM AND ALLOCATE T HE REFUND AMONG THE MEMBERS OF THE PASS –THROUGH 31
92	92	ENTITY IN ANY MANNER . 32
93	93
94	94	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 33
95	95	1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 34