Maryland 2024 Regular Session

Maryland Senate Bill SB702 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
44 [Brackets] indicate matter deleted from existing law.
55 *sb0702*
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77 SENATE BILL 702
88 Q3 4lr2867
99 CF 4lr2827
1010 By: Senator Beidle
1111 Introduced and read first time: January 30, 2024
1212 Assigned to: Budget and Taxation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Income Tax – Biotechnology Investment Incentive Tax Credit Program – 2
1919 Pass–Through Entities 3
2020
2121 FOR the purpose of allowing a qualified investor that is a pass–through entity that pays a 4
2222 certain income tax on behalf of its members to receive and allocate in any manner a 5
2323 credit or refund of a credit under the Biotechnology Investment Incentive Tax Credit 6
2424 Program; and generally relating to the Biotechnology Investment Incentive Tax 7
2525 Credit Program. 8
2626
2727 BY repealing and reenacting, without amendments, 9
2828 Article – Tax – General 10
2929 Section 10–725(a)(1) and (6) and (b)(2) 11
3030 Annotated Code of Maryland 12
3131 (2022 Replacement Volume and 2023 Supplement) 13
3232
3333 BY adding to 14
3434 Article – Tax – General 15
3535 Section 10–725(b)(5) 16
3636 Annotated Code of Maryland 17
3737 (2022 Replacement Volume and 2023 Supplement) 18
3838
3939 BY repealing and reenacting, with amendments, 19
4040 Article – Tax – General 20
4141 Section 10–725(d)(3) 21
4242 Annotated Code of Maryland 22
4343 (2022 Replacement Volume and 2023 Supplement) 23
4444
4545 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMB LY OF MARYLAND, 24
4646 That the Laws of Maryland read as follows: 25
4747
4848 Article – Tax – General 26 2 SENATE BILL 702
4949
5050
5151
5252 10–725. 1
5353
5454 (a) (1) In this section the following words have the meanings indicated. 2
5555
5656 (6) (i) “Qualified investor” means any individual or entity that invests 3
5757 at least $25,000 in a qualified Maryland biotechnology company and that is required to file 4
5858 an income tax return in any jurisdiction. 5
5959
6060 (ii) “Qualified investor” does not include: 6
6161
6262 1. a qualified pension plan, individual retirement account, or 7
6363 other qualified retirement plan under the Employee Retirement Income Security Act of 8
6464 1974, as amended, or fiduciaries or custodians under such plans, or similar tax–favored 9
6565 plans or entities under the laws of other countries; or 10
6666
6767 2. a founder or current employee of the qualified Maryland 11
6868 biotechnology company, if the company has been in active business for more than 5 years. 12
6969
7070 (b) (2) Subject to paragraphs (3) and (4) of this subsection and subsections (d) 13
7171 and (e) of this section, for the taxable year in which an investment in a qualified Maryland 14
7272 biotechnology company is made, a qualified investor may claim a credit against the State 15
7373 income tax in an amount equal to the amount of tax credit stated in the final credit 16
7474 certificate approved by the Secretary for the investment as provided under this section. 17
7575
7676 (5) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A CREDIT 18
7777 UNDER PARAGRAPH (2) OF THIS SUBSECTION I S A PASS–THROUGH ENTITY THAT 19
7878 PAYS THE INCOME TAX IMPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 20
7979 ALL MEMBERS OF THE PASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 21
8080 CLAIM AND ALLOCATE T HE CREDIT AMONG THE MEMBERS OF THE PASS –THROUGH 22
8181 ENTITY IN ANY MANNER . 23
8282
8383 (d) (3) (I) If the tax credit allowed under this section in any taxable year 24
8484 exceeds the total tax otherwise payable by the qualified investor for that taxable year, the 25
8585 qualified investor may claim a refund in the amount of the excess. 26
8686
8787 (II) IF THE QUALIFIED INVE STOR ALLOWED TO CLAI M A REFUND 27
8888 UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH IS A PASS–THROUGH ENTITY THAT 28
8989 PAYS THE INCOME TAX I MPOSED UNDER § 10–102.1 OF THIS TITLE ON BEH ALF OF 29
9090 ALL MEMBERS OF THE P ASS–THROUGH ENTITY , THE PASS–THROUGH ENTITY MAY 30
9191 CLAIM AND ALLOCATE T HE REFUND AMONG THE MEMBERS OF THE PASS –THROUGH 31
9292 ENTITY IN ANY MANNER . 32
9393
9494 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 33
9595 1, 2024, and shall be applicable to all taxable years beginning after December 31, 2023. 34