Bill Positions

Bill Number: SB 64

Bill Title: Maryland Research and Development Tax Credit - Sunset Extension

Bill Sponsor(s): Ch. B&T (Dept. DBED)

Subject: Budget & Taxation

Committee: B&T

Bill Summary: This bill would extend the termination date of the state R&D income tax credit from January 1, 2011 to January 1, 2020.

History: The state R&D income tax credit was created in 2000, authorizing up $6 million in credits annually to businesses for qualified R&D expenditures. One-half of the credit amounts are provided based on 3% of current year expenses; one-half are based on expenditures that exceed the average of expenses for the prior 4 years. The program's termination was extended in 2005, but is currently scheduled to lapse after tax year 2010.

Chamber Position: Support

Position Summary: The state must continue to promote research and development as an important part of Maryland's economic development efforts. In 2007 DBED certified over $1.2 billion in R&D expenses for 126 businesses that applied for the credit. Maryland is the home of one of the nation's largest bioscience research complexes.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.