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Aerospace, Electronics, or Defense Contract Tax Credit

Businesses or individuals who operate an Aerospace, Electronics, or Defense Contract Tax Credit Project may be eligible for an income tax credit.  The income tax credit is based on the number of qualified positions created or retained for an Aerospace, Electronics, or Defense Contract Tax Credit Project.  The maximum credit amount is $2,500,000 per Aerospace, Electronics, or Defense Contract Tax Credit Project. 

To qualify for the tax credit, the individual or business must be a qualified business entity.  A qualified business entity is an individual or business conducting or operating a for-profit trade or business in Maryland that is certified by the Maryland Department of Commerce as qualifying for the income tax credit.  A government entity does not qualify for the Aerospace, Electronics, or Defense Contract Tax Credit.

A business entity operating a project must create or retain at least 10,000 qualified positions in Maryland and submit a budget evidencing the business entity will expend at least $25,000,000 in qualifying expenditures in Maryland during the credit year for the project to be certified by the Maryland Department of Commerce as an Aerospace, Electronics, or Defense Contract Tax Credit Project.  A qualified business entity may receive up to three designations for Aerospace, Electronics, or Defense Contract Tax Credit Projects in a fiscal year.

A qualified position is a full-time position of indefinite duration with an annual salary of at least $85,000, including associated benefits, is located in Maryland, is created or retained as a result of the Aerospace, Electronics, or Defense Contract Tax Credit Project of the qualified business entity and is filled.  A qualified position does not include a position that is filled for a period of less than 12 months.

Qualified expenditures are capital expenditures that have been expended or will be expended by a qualified business entity and that the Maryland Department of Commerce determines have met the requirements for an Aerospace, Electronics, or Defense Contract Tax Credit Project.

For questions on application and certification processes or for additional information on this credit program, contact:

Maryland Department of Commerce
Office of Finance Programs, Tax Incentives Group
401 E. Pratt St.
Baltimore, MD 21202
410-767-6438



 
Links for Business Tax Credits
Business Tax Types
Income Tax
Filing Information
Business Tax Credits
  Bio-Heating Oil Tax Credit
  Biotechnology Investment Incentive Tax Credit
  Businesses That Create New Jobs Tax Credit
  Cellulosic Ethanol Technology Research and Development Tax Credit
  Clean Energy Incentive Tax Credit
  Community Investment Tax Credit
  Commuter Tax Credit
  Cybersecurity Investment Incentive Tax Credit
  Employer-Provided Long-Term Care Insurance Tax Credit
  Enterprise Zone Tax Credit
  Film Production Activity Tax Credit
  Health Enterprise Zone Hiring Tax Credit
  Job Creation Tax Credit
  Maryland Disability Employment Tax Credit
  Maryland-Mined Coal Tax Credit
  Oyster Shell Recycling Tax Credit
  One Maryland Economic Development Tax Credit
  Qualified Vehicle Tax Credit
  Research and Development Tax Credits
  Heritage Structure Rehabilitation Tax Credit
  Wineries and Vineyards Tax Credit
  Aerospace, Electronics, or Defense Contract Tax Credit
  Maryland Employer Security Clearance Costs Tax Credits
  Qualified Farms Tax Credit
  Apprentice Employee Tax Credit
  Qualified Veteran Employees Tax Credit
  Preservation and Conservation Easements Tax Credit
  Endow Maryland Tax Credit
 
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