The City of Frederick is currently considering a tax credit to incentivize manufacturing companies to locate or expand in the area. The Frederick County Council will consider a similar proposal during its meeting on August 18.
As reported by the Frederick News-Post,
The draft ordinance submitted by Richard Griffin, director of economic development, would offer property tax credits to manufacturers that invest at least $5 million in acquiring or expanding a building, land or equipment and create at least 25 new jobs with wages equal to at least 150 percent of the federal minimum wage. For up to 10 years, eligible companies would receive a 60 percent credit toward the taxes on the increase in property value from this investment.
The proposal mirrors similar legislation, with the same numbers, under consideration by the Frederick County Council. A public hearing on the county ordinance is planned for Aug. 18. With many neighboring counties already offering a similar tax credit, the addition of a credit in the city of Frederick would encourage manufacturing companies to open or expand locally, in turn stimulating economic growth, Griffin said.
During the meeting some city officials expressed interest in lowering the monetary and job creation thresholds to attract smaller manufacturers. City staff plans to examine recent projects to better determine where thresholds should be set.