Provides income tax credits equal to 50% of an eligible investment for investors in qualified Maryland biotechnology companies.  This tax credit program offers incentives for investment in seed and early stage, biotech companies, up to $250,000. 

Total credit certificates issued in a fiscal year cannot exceed budget amount.  Applications are reviewed and approved on a first come basis.

New for Fiscal Year 2012
Companies will have the opportunity to see a pre-determination as to their status as a Qualified Maryland Biotechnology Company (QMBC).

Between May 15 and June 1, companies wishing to have a pre-determination of their QMBC status should submit their Form B with all attachments via courier or by mail to the Maryland Biotechnology Center (ATTN: Charlene Cook; address below). We will make our best efforts to provide a response no later than June 15, so that you can engage your investors.

Application Forms:
Individual Investors: Download  Form A1 and  Form B
Corporate Investors: Download  Form A2 and  Form B
Pass-Through Entities: Download  Form A3 and  Form B

**NOTE: If a login window opens prompting you to input a user name/password, simply close the login window to continue opening the form. Once the form is open, please remember to save it to your computer before changing or completing the form.**

Qualifying for the Credit

Complete and submit the Maryland Biotechnology Investment Incentive Application Forms to the Maryland Department of Business and Economic Development (DBED).

Include investor form (Form A1, A2 or A3) and the Maryland Biotechnology Company Form (Form B).

Investor Forms:

• Form A1 – Qualified Investor, Individual
• Form A2 – Qualified Investor, Corporation (all kinds including Sub-Chapter S)
• Form A3 – Non Sub-Chapter S Corporation Pass-Through Entities

Qualified Maryland Biotechnology Company Form:

• Form B - Qualified Maryland Biotechnology Company
  Note :  Multiple attachments 11 – Form B do not have to be completed for investors in a prospective QMBC if current Form B attachments 11 are on file with DBED and are 30 days old or less.

Qualifications

• Individual or any entity who invests at least $25,000 in a Qualified Maryland Biotechnology Company.
• Qualified Maryland Biotechnology Company (1) headquarters and base of operations in Maryland; (2) fewer than 50 employees; (3) in active business no longer than 15 years; and (4) certified as a biotechnology company by DBED.

Certification Process

1. June 1, 2011, completed Applications with all attachments will be accepted at the DBED offices located at Maryland Biotechnology Center, World Trade Center, 401 East Pratt Street, 7th Floor, Baltimore, MD 21202.  A User Name and Reference Number will be issued within 48 hours, except applications received after June 24, 2011 will have a User Name and Reference Number issued after July 4, 2011.

2. The second step of the application process will require that the User Name and Reference Number be used to electronically complete the submission beginning at 9:00 am EDT on July 1, 2011 through the website located at www.mdbiotaxcredit.org. Submission order of the applications will be determined by “first come first served” based ONLY on the electronic submission of the User Name and Reference Number.  No physical application can be filed for purposes of the ordering of first come first served.  

3. Multiple submissions by an applicant using the same user name and reference number will be considered filed at the date and time of the LAST submission. This rule is to maintain that the application procedure is as fair and equitable as possible.

4. Any decision made by DBED during the application process is considered final.

5. Applications are reviewed and approved based on the order received.  At least 30 calendar days but no more than 60 calendar days prior to making a qualifying investment, the investor submits a completed application to DBED.  Within 30 calendar days of receiving the application, DBED will issue an initial credit certificate certifying the amount of any approved tax credits to a Qualified Investor or offer rejection.  Investor has 30 days after the date DBED issues the tax credit to make an investment in the Qualified Maryland Biotechnology Company.  Within 10 days of making the investment, the investor shall provide written notice with supporting documentation to DBED.  If the investor fails to provide notice of investment to DBED within 40 days after the issuance of the initial tax credit certificate DBED shall rescind the certificate.  Based on the actual investment DBED shall issue a final tax credit certificate.