Businesses locating in a Maryland Enterprise Zone may be eligible for income tax credits and real property tax credits in return for job creation and investments made in the zone. Businesses that locate in one of Maryland’s focus areas may also be eligible for personal property tax credits. 

Enterprise Zone Tax Credits

• Real property tax credits : Ten-year credit against local real property taxes on a portion of real property improvements. Credit is 80 percent the first five years, and decreases 10 percent annually thereafter to 30 percent in the tenth and last year.
• Income tax credits : One- or three-year credit for creating new jobs. The general credit is a one-time $1,000 credit per new employee. For economically disadvantaged employees, the credit increases to a total of $6,000 per employee distributed over three years.

Focus Area Tax Credits
Businesses locating in a focus area within the Baltimore City or Prince George’s County enterprise zones may be eligible for the following tax credits:

• Real property tax credits : Ten-year, 80 percent credit against local real property taxes on a portion of real property improvements (credit does not decline in a focus area as it does with the standard benefit.)
• Personal property tax credits : Ten-year, 80 percent credit against local personal property taxes on new investment in personal property within a focus area.
• Income tax credits : One- or three-year credit for creating new jobs. The general credit is a one-time $1,500 credit per new employee. For economically disadvantaged employees, the credit increases to a total of $9,000 per employee distributed over three years.

Twenty-eight enterprise zones are located throughout the state.  Download an Enterprise Zone map for a listing of enterprise zones and their location in Maryland. You can also download frequently asked questions about the real property tax credit and the income tax credit .

Counties and municipalities are responsible for certifying a business as eligible for the tax credits. Contact the county or municipal enterprise zone administrator for more information on being certified.