Changes to Biotechnology Investment Incentive Tax Credit

Senate Bill 800 (Chapter 605, Acts of 2009)

House Bill 493 (Chapter 606, Acts of 2009)

These Acts were cross-filed bills and are identical. The Acts amend the Biotechnology Investment Incentive Tax Credit, found in §10-725 of the Tax-General Article. These Acts first clarify that a qualified investor includes both an individual and entity. Second, these Acts provide that a tax credit under this section must be claimed for the taxable year in which the investment in a qualified Maryland biotechnology company is made. Following this change, the Acts delete obsolete language from the statute regarding when the investor could redeem a final credit certificate.

The Acts change the language of the recapture found in §10-725(f) to conform with the timing of the credit. The language is changed from the taxable year in which the credit is approved to the taxable year for which the credit is claimed.

Finally, the Acts make a change to enacted Chapter 518 of the Acts of 2008. The Acts provide that Chapter 518 remains effective as of July 1, 2008, but removes the language that the Chapter applies to all taxable years after December 31, 2008. The Acts provide that for Chapter 518, a tax credit for an investment under §10-725 of the Tax-General Article as amended by these Acts shall be claimed for the taxable year in which the investments were made.

This Act takes effect July 1, 2009.