Your SlideShare is downloading. ×
Biotechnology Investment Incentive Tax Credit
Biotechnology Investment Incentive Tax Credit
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Biotechnology Investment Incentive Tax Credit

113

Published on

An individual or business may be allowed a tax credit of up to 50% of an eligible investment in a qualified Maryland biotechnology company (QMBC), up to $250,000. The investor, after making the …

An individual or business may be allowed a tax credit of up to 50% of an eligible investment in a qualified Maryland biotechnology company (QMBC), up to $250,000. The investor, after making the proposed investment, cannot own or control more than 25% of the biotechnology company.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
113
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Biotech Investment Incentive Tax Credit An individual or business may be allowed a tax credit of up to 50% of an eligible investment in a qualified Maryland biotechnology company (QMBC), up to $250,000. The investor, after making the proposed investment, cannot own or control more than 25% of the biotechnology company. The credit may be taken against corporate income tax or personal income tax. Sole proprietorships, corporations and pass-through entities, such as partnerships, subchapter S corporations, limited liability companies and business trusts, may claim the tax credit. To qualify for the credit: Qualified investors must contribute at least $25,000 in cash or cash-equivalent to a QMBC that is certified by the Maryland Department of Business and Economic Development (DBED). A QMBC must: Have its headquarters and base of operations in Maryland; Have fewer than 50 full-time employees Have been in active business for no longer than 10 years from the date it received its first qualified investment; and Not have any securities publicly traded companion any exchange. A QMBC may include a company that has been an active business for up to 12 years, with DBED approval. Qualified investors are also required to file an income tax return. Credits may be claimed for no more than $250,000 per investment in a qualified biotechnology company. DBED may not certify tax credits for investments in a single qualified biotechnology company that are in the aggregate more than 15% of the total amount appropriated to the Maryland Biotechnology Investment Tax Credit Reserve Fund for that fiscal year. DBED may not issue initial credit certificates in excess of the amount appropriated to the Reserve Fund for that fiscal year in the state budget as approved by the General Assembly. At least 30 days before making an investment, the business must submit an initial credit certificate application to DBED. Upon approval (within 30 days of DBED’s receipt of the application), the applicant will receive an initial credit certificate stating the amount of the tax credit and will have 30 days to make the investment. Within the following 10 days, the investor must notify DBED that the investment has been made. A final credit certificate will be issued to the applicant stating the amount of the tax credit to which the applicant is entitled. A copy of the final credit certificate must be filed with the taxpayer’s income tax return.
  • 2. How the credit is calculated: The credit allowed is 50% of an eligible investment contributed during the tax year, not to exceed $250,000. The amount in excess of the state tax liability may be refunded. The total amount of final tax credit certificates issued by DBED each year is limited to the amount appropriated to the Reserve Fund in the State budget. Applications are reviewed and approved on a first come, first served basis. Documentation required: For taxable years beginning after December 31, 2012, this credit is available only with an electronically-filed return. A copy of the certification issued by DBED must be included with the electronic return, and the. Form 500CR section of the return must be completed. Contact: Maryland Department of Business and Economic Development Office of Finance Programs, Tax Incentives Group 401 E. Pratt Street Baltimore, MD 21202 Phone: 410-767-6438 or 410-767-4980 E-mail: taxincentives@choosemaryland.org McMillan Consulting 828A E. Baltimore St. Baltimore, MD 21202 Phone: 410-775-6226 Web: http://mcmillancos.com E-mail: info@mcmillancos.com McMillan Consulting is not affiliated with the state of Maryland. This document is for informational purposes. Contact us, the appropriate agency for this credit or your tax professional for further assistance. You can view Maryland's tax credits by visiting http://macadvises.net/mdtaxsignal.php and clicking on the MD Business Tax Credits link. We can send you a hard copy of this or any of our info sheets for Maryland tax credits.

×