Maryland’s DECADE Act Delivers: Three Critical Business Tax Credits Get Multi-Year Extensions

Maryland has renewed the state R&D Tax Credit, which is a credit equal to 10% of eligible R&D expenses incurred during the taxable year in excess of the Maryland Base Amount. Originally set to expire mid-next year, the credit is now extended through 2030.

The Jobs Creation Tax Credit (JCTC) was also extended through 2031 and provides ranges of credit between $3,000 and $6,000 per qualified employee. The JCTC is an income tax credit to eligible businesses that locate or expand in the state and create a minimum number of net new full-time positions.

As part of this same legislation, the Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act, Maryland also renewed the Employer Security Clearance Costs (ESCC) Tax Credit, extending this credit through 2032. The ESCC Tax Credit provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs), and first-year leasing costs for small businesses doing security-based contract work.