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Biotechnology Investment Incentive Tax Credit

New update for FY2014 applicants (companies and investors): 

In February of 2014, initial tax certificates for the last $1.4 million of tax credits for FY 2014 were issued. However, since investors may choose not to invest the full amount for which they have been certified, the BIITC fund remains OPEN. You should continue to apply and your application will be reviewed in the order that it is received. The release of information on availability of any returned tax credits is expected in April of 2014.

Please continue to check this website as well as www.bio.maryland.gov for the most recent information regarding the availability of tax credits.

Overview

Provides income tax credits equal to 50% of an eligible investment for investors in Qualified Maryland Biotechnology Companies (QMBCs).  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.

Beginning on June 3, 2013, the Maryland Department of Business and Economic Development (DBED) will be accepting applications to enable participation in the electronic filing process that will take place on July 8, 2013.  Please submit your application plus attachments via courier or by mail to the BioMaryland Center (ATTN: Charlene Cook; World Trade Center, 401 E. Pratt Street, 7th Floor, Baltimore, Maryland 21202).

Investors making qualified investments in QMBCs in Montgomery County, Maryland, in addition to receiving Maryland’s Biotechnology Investment Incentive Tax Credit, may receive a payment from the County’s Supplemental Program.  For FY 2014, Montgomery County has reserved $500,000 for its Supplemental Program. For more details, please contact Peter Bang of the Montgomery County Department of Economic Development at (240) 777-2008.

Click here for the Unofficial Queue of Biotechnology Investment Incentive Investors as of October 11, 2013.

2014 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 Tax Credit Application Forms to 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 does not have to be completed for investors in a prospective QMBC if a current Form B is on file with DBED and is 30 days old or less.

Qualifications

  • Individual or any entity who invests at least $25,000 in a QMBC.
  • QMBC (1) headquarters and base of operations in Maryland; (2) fewer than 50 employees; (3) in active business no longer than 10 years (up to 12 years if in the process of regulatory approval) and once certified as a QMBC, a QMBC may remain eligible for a qualified investment for up to 10 years; and (4) certified as a biotechnology company by DBED.

Certification Process

  1. Users must have Javascript and Abobe Flash plugins to view official clock and Recaptcha verification.

  2. June 3, 2013, completed applications with all attachments will be accepted at the DBED offices located at BioMaryland 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 28, 2013 will have a User Name and Reference Number issued after July 8, 2013.

  3. 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 8, 2013 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 .  

  4. 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.

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

  6. 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 qualified investor submits a completed application to DBED.  Within 30 calendar days of receiving the application, DBED will issue an initial tax credit certificate certifying the amount of any approved tax credits to a Qualified Investor or offer rejection.  A qualified investor has 30 days after the date DBED issues the tax credit to make an investment in QMBC.  Within 10 days of making the investment, the qualified investor shall provide written notice with supporting documentation to DBED.  If the qualified 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.

Additional Resources: 

 Statute: Tax General Sec. 10-725
 Regulations
 Amendment to Statute
 Frequently Asked Questions 

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