MACo: Cutting Enterprise Zone Tax Credit Payments Hurts Local Economies

On March 5, 2020, MACo Associate Director Kevin Kinnally submitted testimony to the House Ways & Means Committee in opposition to HB 1117 – Economic Development – Enterprise Zone Program – Alterations. This bill would limit the amount that the State must reimburse local governments for property tax credits issued under the Enterprise Zone tax credit program.

From the MACo Testimony:

The Enterprise Zone program 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.

The Enterprise Zone program is a primary example of these collaborative efforts. The program brings together state and local resources to encourage economic growth and create jobs. Businesses located within these areas are eligible for local property tax credits and state income tax credits. The State Department of Assessments and Taxation reimburses local governments for 50% of foregone property tax revenues. According to the bill’s fiscal note, local revenues would decrease by $6 million by 2025 as a result of the State limiting local property tax reimbursements.

Follow MACo’s advocacy efforts during the 2020 legislative session on MACo’s Legislative Tracking Database.