The Maryland General Assembly has passed the Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act (SB 388 / HB 898), a sweeping package of economic development updates aimed at strengthening the State’s competitiveness, supporting innovation sectors, and modernizing several long-standing incentive programs.
MACo has consistently supported economic development policies that provide flexible, locally adaptable tools rather than one-size-fits-all mandates. The DECADE Act largely reflects this approach by extending key programs, enhancing financing flexibility, and enabling layered incentives to better compete for business investment. The legislation makes targeted changes across multiple programs, pairing enhanced incentives with new reporting requirements and structural updates to how Maryland deploys economic development resources.
As previously covered by MACo, the Maryland Department of Legislative Services recently released its 90 Day Report, or annual synopsis of the General Assembly’s time in Annapolis, which provides an update on major issues, including the DECADE Act, addressed in bills that passed – and didn’t pass – in the 2026 Session.
From the 90 Day Report:
Among various other alterations and enhancements to Maryland economic development programs, Senate Bill 388/House Bill 898 (both passed) modify and extend several Department of Commerce-administered tax credit programs, as detailed below. State revenue reductions from tax credit extensions are estimated to total $16.0 million (including $13.0 million in general funds) in fiscal 2028 and increase to $18.0 million (including $14.6 million in general funds) in fiscal 2030.
The DECADE Act extends several major economic development tax credit programs, preserving tools that counties frequently rely on to support job creation and private investment:
- Job Creation Tax Credit Program extended through January 1, 2032, continuing up to $4 million annually in credits for businesses that expand and create jobs within a defined timeframe.
- Employer Security Clearance Costs Tax Credit extended through tax year 2032, supporting businesses engaged in security-related contracting work.
- Research and Development (R&D) Tax Credit Program extended for tax years 2026 through 2030, maintaining up to $12 million in annual credits, including refundable credits for small businesses.
These extensions provide continuity and predictability for local economic development strategies, particularly in sectors like biotechnology, cybersecurity, and advanced manufacturing.
The legislation also restructures the State’s “Sunny Day Fund,” renaming it the Strategic Closing Fund and transferring oversight to the Department of Commerce. This fund is used to support major economic development opportunities through loans, grants, and investments. The bill enhances the flexibility of the Maryland Economic Development Assistance Authority and Fund by:
- Increasing the amount of financial assistance that may be approved
- Removing certain local matching fund requirements
- Allowing more discretion in setting loan terms and interest rates
These changes may improve the State’s ability to respond quickly to competitive economic opportunities, while also altering traditional State-local funding dynamics.
While the DECADE Act expands and extends several incentive tools, it also increases reporting requirements for local governments participating in the “businesses that create new jobs” program. Counties will now be required to report more detailed information on businesses receiving credits, including investment levels and job creation outcomes. These changes aim to improve transparency and program evaluation but may also introduce additional administrative responsibilities for local jurisdictions.
From the amended version of the DECADE Act (pages 86-87):
(m) (1) On October 1 [of each year], 2026, AND EACH OCTOBER 1 24 THEREAFTER, each county and municipal corporation that has granted tax credits under 25 this section shall report to the Department[, the Department of Commerce, and the 26 Comptroller]: 27
[(1)] (I) [the amount of] FOR each credit granted for that year, THE 28 FOLLOWING INFORMATION: 29
1. THE AMOUNT OF THE CREDIT; 30 SENATE BILL 388 87
2. THE NAME AND ADDRESS OF THE BUSINESS ENTITY; 1
3. THE INVESTMENT ASSOCIATED WITH THE CREDIT; 2
4. WHETHER THE CREDIT RESULTED FROM AN 3 EXPANSION, A RELOCATION, OR A NEW BUSINESS; 4
5. THE NUMBER OF JOBS ASSOCIATED WITH THE CREDIT; 5
6. WHETHER THE BUSINESS ENTITY HAD A PRESENCE IN 6 THE STATE PRIOR TO RECEIVING THE CREDIT AND THE BUSINESS ENTITY’S YEARS 7 OF OPERATION; AND 8
7. THE TOTAL NUMBER OF INDIVIDUALS EMPLOYED BY 9 THE BUSINESS ENTITY; and 10
[(2)] (II) whether the business entity is in compliance with the 11 requirements for the tax credit.
As the State continues to compete for jobs and investment, the DECADE Act represents a meaningful step in modernizing the State’s economic development framework, one that will rely heavily on continued State-local collaboration to achieve its full potential.
Click here to view the enrolled version of SB 388 / HB 898.
