On February 12, 2020, MACo Associate Director Kevin Kinnally testified before the House Ways and Means Committee in opposition of HB 223 – End Ineffective Business Subsidies Act of 2020 and HB 565 – Income Tax – Business and Economic Development Tax Credits – Termination.
These two bills are substantially the same – they would repeal the One Maryland Tax Credit, Enterprise Zone, and Focus Area/RISE programs – incentive programs designed to attract and retain businesses in areas where targeted investment is most needed.
Eligibility for the tax-credits offered by these programs is directly tied to business investments in economic development and job creation. Local economic growth helps to expand the tax base which in turn boosts county revenue structures and supports local funding for education, public safety, roadway maintenance, and other essential services.
Local governments believe the tax incentives offered by these programs are extremely effective and urged the Committee to keep them intact.
From the MACo Testimony for HB 223:
The Enterprise Zone and Focus Area tax credit programs are examples of these collaborative efforts. Both programs bring together state and local resources to encourage economic growth and create jobs. These programs have been effective tools for local economic development directors when recruiting new businesses. Many believe businesses would not have located in their jurisdictions if it were not for the availability of property tax incentives.
The One Maryland Tax Credit helps incentivize businesses to locate or expand into several low-income or underserved urban and rural communities across Maryland. This in turn creates jobs, contributes to enhancing quality of life, and expands the local tax base – enabling counties to better provide core services for their residents.
Click here for the MACo Testimony for HB 565.
Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.