Biotechnology Investment Incentive Tax Credit - Conversion to Grant Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0247*

SENATE BILL 247
Q3, C8 6lr1292
CF HB 400
By: Senator Beidle Senators Beidle, Augustine, Guzzone, Hettleman, King,
Lewis Young, McCray, Rosapepe, and Zucker
Introduced and read first time: January 16, 2026
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 9, 2026

CHAPTER ______

AN ACT concerning 1

Biotechnology Investment Incentive Tax Credit – Conversion to Grant Program 2

FOR the purpose of converting the Biotechnology Investment Incentive Tax Credit to be 3
the Biotechnology Investment Incentive Grant Program in the Department of 4
Commerce; requiring the Department to disb urse a grant within a certain time 5
period; allowing a subtraction modification under the Maryland income tax for 6
certain grants received during the taxable year; and generally relating to the 7
Biotechnology Investment Incentive Grant Program. 8

BY transferring 9
Article – Tax – General 10
Section 10–725(a), (b), (c), (d) and (e), (f), (g), (h), and (i) 11
Annotated Code of Maryland 12
(2022 Replacement Volume and 2025 Supplement) 13
to be 14
Article – Economic Development 15
Section 5 –2701, 5 –2702, 5 –2703, 5 –2704, 5–2706, 5 –2707, 5 –2708, and 5 –2709, 16
respectively, to be under the new subtitle “Subtitle 27. Biotechnology 17
Investment Incentive Grant Program” 18
Annotated Code of Maryland 19
(2024 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, with amendments, 21
Article – Economic Development 22
2 SENATE BILL 247

Section 2.5–109(a), 6–1001(b), (c), and (e), and 6–1006 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2025 Supplement) 3

BY repealing and reenacting, with amendments, 4
Article – Economic Development 5
Section 5–2701 through 5–2704 and 5–2706 through 5–2709 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8
(As enacted by Section 1 of this Act) 9

BY adding to 10
Article – Economic Development 11
Section 5–2705 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14

BY repealing and reenacting, without amendments, 15
Article – Economic Development 16
Section 6–1001(a) and (d) 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19

BY repealing and reenacting, without amendments, 20
Article – Tax – General 21
Section 10–207(a) and 10–307(a) 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2025 Supplement) 24

BY adding to 25
Article – Tax – General 26
Section 10–207(rr) and 10–307(h) 27
Annotated Code of Maryland 28
(2022 Replacement Volume and 2025 Supplement) 29

BY repealing 30
Article – Tax – General 31
Section 10–725(j) 32
Annotated Code of Maryland 33
(2022 Replacement Volume and 2025 Supplement) 34

BY repealing and reenacting, with amendments, 35
Article – Tax – General 36
Section 10–804(j)(1) 37
Annotated Code of Maryland 38
(2022 Replacement Volume and 2025 Supplement) 39

SENATE BILL 247 3

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That Section(s) 10–725(a), (b), (c), (d) and (e), (f), (g), (h), and (i) of Article – Tax – General 2
of the Annotated Code of Maryland be transferred to be Section(s) 5–2701, 5–2702, 5–2703, 3
5–2704, 5–2706, 5–2707, 5–2708, and 5 –2709, respectively, to be under the new subtitle 4
“Subtitle 27. Biotechnology Investment Incentive Grant Program” of Ar ticle – Economic 5
Development of the Annotated Code of Maryland. 6

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 7
as follows: 8

Article – Economic Development 9

2.5–109. 10

(a) In this section, “economic development program” means: 11

(1) the Economic Development Opportunities Program Account 12
established under § 7–314 of the State Finance and Procurement Article; 13

(2) the Partnership for Workforce Quality Program established under Title 14
3, Subtitle 4 of this article; 15

(3) each of the e conomic development and financial assistance programs 16
established under Title 5 of this article; and 17

(4) each of the tax credit programs administered by the Department, 18
including: 19

(i) the Film Production Activity Tax Credit; 20

(ii) the Job Creation Tax Credit; 21

(iii) the One Maryland Economic Development Tax Credit; 22

(iv) [the Biotechnology Investment Incentive Tax Credit; 23

(v)] the Research and Development Tax Credit; 24

[(vi)] (V) the Security Clearance Administrative Expenses and 25
Construction and Equipment Costs Tax Credit; 26

[(vii)] (VI) the Innovation Investment Incentive Tax Credit; 27

[(viii)] (VII) the More Jobs for Marylanders Tax Credit; 28

4 SENATE BILL 247

[(ix)] (VIII) the Purchase of Cybersecurity Technology or Service Tax 1
Credit; 2

[(x)] (IX) the Opportunity Zone Enhancement Tax Credit; 3

[(xi)] (X) the Small Business Relief Tax Credit; 4

[(xii)] (XI) any other tax credit program that is administered by the 5
Department under: 6

1. Title 6 of this article; or 7

2. Title 10, Subtitle 7 of the Tax – General Article; and 8

[(xiii)] (XII) the Theatrical Production Tax Credit. 9

Subtitle 27. Biotechnology Investment Incentive Grant Program. 10

5–2701. 11

(a) [(1)] In this [section] SUBTITLE the following words have the meanings 12
indicated. 13

[(2)] (B) “Biotechnology company” means a company organized for profit 14
that is primarily engaged in, or within 2 months will be primarily engaged in, the research, 15
development, or commercialization of in novative and proprietary technology that 16
comprises, interacts with, or analyzes biological material including biomolecules (DNA, 17
RNA, or protein), cells, tissues, or organs. 18

[(3)] (C) [(i)] (1) “Company” means any entity of any form duly 19
organized and e xisting under the laws of any jurisdiction for the purpose of conducting 20
business for profit. 21

[(ii)] (2) “Company” does not include a sole proprietorship. 22

[(4) “Department” means the Department of Commerce. 23

(5)] (D) “FUND” MEANS THE BIOTECHNOLOGY INVESTMENT 24
INCENTIVE GRANT PROGRAM FUND. 25

(E) [(i)] (1) “Investment” means the contribution of money in cash or cash 26
equivalents expressed in United States dollars, at a risk of loss, to a qualified Maryland 27
biotechnology company in exchange for stock, a partnership or membership interest, or 28
other ownership interest in the equity of the qualified Maryland biotechnology company, 29
title to which ownership interest shall vest in the qualified investor. 30

SENATE BILL 247 5

[(ii)] (2) “Investment” does not include debt. 1

[(iii)] (3) For purposes of this [section] SUBTITLE, an investment is 2
at risk of loss when its repayment entirely depends upon the success of the business 3
operations of the qualified company. 4

(F) “PROGRAM” MEANS THE BIOTECHNOLOGY INVESTMENT INCENTIVE 5
GRANT PROGRAM. 6

[(6)] (G) [(i)] (1) “Qualified investor” means any individual or entity 7
that invests at least $25,000 in a qualified Maryland biotechnology company and that is 8
required to file an income tax return in any jurisdiction. 9

[(ii)] (2) “Qualified investor” does not include: 10

[1.] (I) a qualified pension plan, individual retirement 11
account, or other qualified retirement plan under the Employee Retirement Income 12
Security Act of 1974, as amended, or fiduciaries or custodians under such plans, or similar 13
tax–favored plans or entities under the laws of other countries; or 14

[2.] (II) a founder or current employee of the qualified 15
Maryland biotechnology company, if the company has been in active business for more than 16
5 years. 17

[(7)] (H) [(i)] (1) “Qualified Maryland biotechnology company” 18
means a biotechnology company that: 19

[1.] (I) has its headquarters and base of operations in this 20
State; 21

[2.] (II) has fewer than 50 full–time employees; 22

[3.] (III) has been in active business no longer than 12 years; 23

[4.] (IV) does not have its securities publicly traded on any 24
exchange; 25

[5.] (V) has been certified as a biotechnology company by 26
the Department; and 27

[6.] (VI) the qualified investors in the company have not 28
received more than $7,000,000 in tax credits UNDER THE BIOTECHNOLOGY 29
INVESTMENT INCENTIVE TAX CREDIT PROGRAM OR GRANTS in the aggregate under 30
this [section] SUBTITLE. 31

6 SENATE BILL 247

[(ii)] (2) “Qualified Maryland biotechnology company” includes a 1
company that, within 2 months of the receipt of the investment, has met the requirements 2
of [subparagraph (i) of this paragraph] PARAGRAPH (1) OF THIS SUBSECTION. 3

[(8) “Secretary” means the Secretary of Commerce.] 4

5–2702. 5

[(b)] (A) (1) THERE IS A BIOTECHNOLOGY INVESTMENT INCENTIVE 6
GRANT PROGRAM IN THE DEPARTMENT. 7

(2) THE PROGRAM IS THE SUCCES SOR TO THE BIOTECHNOLOGY 8
INVESTMENT INCENTIVE TAX CREDIT PROGRAM. 9

[(1)] (B) The [Biotechnology Investm ent Incentive Tax Credit is 10
intended] PURPOSE OF THE PROGRAM IS to foster the growth of Maryland’s 11
biotechnology industry by incentivizing investment in early stage companies with the goal 12
of increasing the number of companies developing biotechnologies in Maryland, increasing 13
overall investments in the biotechnology sector, and increasing the number of individual 14
investors actively investing in Maryland’s life sciences companies. 15

[(2)] (C) Subject to [paragraphs (3) and (4) of this subsection and ] 16
subsections (d) and (e) of this section AND §§ 5–2704 AND 5–2705 OF THIS SUBTITLE, for 17
the [taxable] FISCAL year in which an investment in a qualified Maryland biotechnology 18
company is made, a qualified investor may [claim a credit against the State income tax in 19
an amount equal to the amount of tax credit stated in the final credit certificate approved 20
by the Secretary ] BE AWARDED A GRANT B Y THE SECRETARY for the investment as 21
provided under this [section] SUBTITLE. 22

[(3)] (D) To be eligible for [the tax credit described in paragraph (2) of this 23
subsection] A GRANT UNDER THIS SUBTITLE, the qualified investor shall be: 24

[(i)] (1) for a company, duly organized and in good standing in the 25
jurisdiction under the laws under which it is organized; 26

[(ii)] (2) for a company, in good standing and authorized or 27
registered to do business in the State; 28

[(iii)] (3) current in the payment of all tax obligations to the State 29
or any unit or subdivision of the State; and 30

[(iv)] (4) not in default under th e terms of any contract with, 31
indebtedness to, or grant from the State or any unit or subdivision of the State. 32

SENATE BILL 247 7

[(4)] (E) To be eligible for [the tax credit described in paragraph (2) of this 1
subsection] A GRANT UNDER THIS S UBTITLE, the qualified invest or may not, after 2
making the proposed investment, own or control more than 25% of the equity interests in 3
the qualified Maryland biotechnology company in which the investment is to be made. 4

5–2703. 5

[(c)] (A) [(1)] At least 30 days prior to making an inv estment in a qualified 6
Maryland biotechnology company for which a qualified investor would be eligible for an 7
initial [tax credit] GRANT ELIGIBILITY certificate under [subsection (b) of this section ] 8
THIS SUBTITLE, the qualified investor shall submit an application to the Department. 9

[(2)] (B) The application shall evidence that the qualified Maryland 10
biotechnology company is: 11

[(i)] (1) in good standing; 12

[(ii)] (2) current in the payment of all tax obligations to the State 13
or any unit or subdivision of the State; and 14

[(iii)] (3) not in default under the terms of any contract with, 15
indebtedness to, or grant from the State or any unit or subdivision of the State. 16

[(3)] (C) [(i)] (1) Subject to [subparagraph (ii) of this paragraph ] 17
PARAGRAPH (2) OF THIS SUBSECTION, the Department shall: 18

[1.] (I) approve all applications that qualify for [credits] A 19
GRANT under this [section] SUBTITLE on a first–come, first–served basis; and 20

[2.] (II) within 30 days of receipt of an application, [certify 21
the amount of any approved tax credits ] ISSUE AN INITIAL GRA NT ELIGIBILITY 22
CERTIFICATE to a qualified investor. 23

[(ii)] (2) The Department may not issue any [tax credit certificates] 24
GRANTS under this [section] SUBTITLE after June 30, 2028. 25

[(4)] (D) [(i)] (1) After the date on which the Department issues an 26
initial [tax credit ] GRANT ELIGIBILITY certificate under this [section] SUBTITLE, a 27
qualified investor shall have 30 calendar days to make an investment in a qualified 28
Maryland biotechnology company under this [section] SUBTITLE. 29

[(ii)] (2) Within 10 calendar days after the date on which a 30
qualified investor makes the investment, the qualified investor shall provide to the 31
Department notice and proof of the making of the investment, including: 32

8 SENATE BILL 247

[1.] (I) the date of the investment; 1

[2.] (II) the amount invested; 2

[3.] (III) proof of the receipt of the invested funds by the 3
qualified Maryland biotechnology company; 4

[4.] (IV) a complete description of the nature of the 5
ownership interest in the equity of the qualified Maryland biotechnology company acquired 6
in consideration of the investment; and 7

[5.] (V) any reasonable supporting documentation the 8
Department may require. 9

[(iii)] (3) If a qualified investor does not provide the notice and proof 10
of the making of the investment required in [subparagraph (ii) of this paragraph ] 11
PARAGRAPH (2) OF THIS SUBSECTION within 40 calendar days after the date on which 12
the Department issues an initial [tax credit] GRANT ELIGIBILITY certificate under this 13
[section] SUBTITLE: 14

[1.] (I) the Department shall rescind the initial [tax credit] 15
GRANT ELIGIBILITY certificate; and 16

[2.] (II) the [credit] GRANT amount allocated to the 17
rescinded certificate shall [revert to the Mary land Biotechnology Investment Tax Credit 18
Reserve Fund and shall ] be available in the applicable fiscal year for allocation by the 19
Department to other initial [tax credit ] GRANT ELIGIBILITY certificates in accordance 20
with the provisions of this [section] SUBTITLE. 21

5–2704. 22

[(d)] (A) [(1) The tax credit ] SUBJECT TO SUBSECTION (B) OF THIS 23
SECTION, THE GRANT allowed in an initial [tax credit] GRANT ELIGIBILITY certificate 24
issued under this [section] SUBTITLE is: 25

[(i)] (1) except as provided in item [(ii) of this paragraph ] (2) OF 26
THIS SUBSECTION, 33% of the investment in a qualified Maryland biotechnology company, 27
not to exceed $250,000; or 28

[(ii)] (2) 50% of the investment in the qualified Maryland 29
biotechnology company, not to exceed $500,000, if a qualified Maryland biotechnology 30
company: 31

[1.] (I) is located in Allegany County, Dorchester County, 32
Garrett County, or Somerset County; or 33
SENATE BILL 247 9

[2.] (II) is located in a Regional Institution Strategic 1
Enterprise zone that is designated under [Title 5, ] Subtitle 14 of [the Economic 2
Development Article] THIS TITLE, is based on technology that was developed at a qualified 3
institution within that zone, and has been in active business not longer than 7 years. 4

[(2)] (B) During any fiscal year, the Secretary may not certify eligibility 5
for [tax credits ] GRANTS for investments in a single qualified Maryland biotechnology 6
company that in the aggregate exceed 10% of the total appropriations to the [Maryland 7
Biotechnology Investment Tax Credit Reserve] Fund for that fiscal year. 8

[(3) If the tax credit allowed under this section in any taxable year exceeds 9
the total tax otherwise payable by the qualified investor for that taxable year, the qualified 10
investor may claim a refund in the amount of the excess. 11

(e) (1) In this subsection, “Reserve Fund” means the Maryland Biotechnology 12
Investment Tax Credit Reserve Fund established under paragraph (2) of this subsection. 13

(2) (i) There is a Biotechnology Investment Tax Credit Re serve Fund 14
which is a special continuing, nonlapsing fund that is not subject to § 7 –302 of the State 15
Finance and Procurement Article. 16

(ii) The money in the Fund shall be invested and reinvested by the 17
Treasurer, and interest and earnings shall be credited to the General Fund.] 18

[(3)] (C) [(i)] (1) Subject to the provisions of this [subsection] 19
SECTION, the Secretary shall issue an initial [tax credit] GRANT ELIGIBILITY certificate 20
for each approved investment in a qualified Maryland biotechnology company eligible for a 21
[tax credit] GRANT. 22

[(ii)] (2) An initial [tax credit ] GRANT ELIGIBILITY certificate 23
issued under this [subsection] SECTION shall state the maximum GRANT amount [of tax 24
credit] for which the qualified investor is eligible. 25

[(iii)] (3) [1.] (I) Except as otherwise provided in this 26
[subparagraph] PARAGRAPH, for any fiscal year, the Secretary may not issue initial [tax 27
credit] GRANT ELIGIBILITY certificates [for credit amounts ] in the aggregate totaling 28
more than the amount appropriated to the [Reserve] Fund for that fiscal year in the State 29
budget as approved by the General Assembly. 30

[2.] (II) If the aggregate [credit] GRANT amounts under 31
initial [tax credit] GRANT ELIGIBILITY certificates issued in a fiscal year total less than 32
the amount appropriated to the [Reserve] Fund for that fiscal year, any excess amount 33
shall remain in the [Reserve] Fund and may be issued under initial [tax credit] GRANT 34
ELIGIBILITY certificates for the next fiscal year. 35
10 SENATE BILL 247

[3.] (III) For any fiscal year, if funds are transferred from the 1
[Reserve] Fund under the authority of any provision of law [other than under paragraph 2
(4) of this subsection], the maximum [credit] GRANT amounts in the aggregate for which 3
the Secretary may issue initial [tax credit ] GRANT ELIGIBILITY certificates shall be 4
reduced by the amount transferred. 5

[(iv) For each fiscal year, the Governor shall include in the budget bill 6
an appropriation to the Reserve Fund. 7

(v) Notwithstanding the provisions of § 7 –213 of the State Finance 8
and Procurement Article, the Governor may not reduce an appropriation to the Reserve 9
Fund in the State budget as approved by the General Assembly.] 10

[(vi)] (D) (1) Based on the actual amount of an investment made 11
by a qualified investor AS DOCUMENTED IN ACCORDANCE WITH § 5–2703(D) OF THIS 12
SUBTITLE, the Secretary shall [issue a final tax credit certificate] AWARD A GRANT to the 13
qualified investor. 14

(2) THE DEPARTMENT SHALL DISBURSE THE G RANT TO THE 15
QUALIFIED INVESTOR W ITHIN 90 DAYS OF DETERMINING THAT THE INVESTMENT 16
HAS BEEN MADE. 17

[(4) (i) Except as provided in this paragraph, money appropriated to the 18
Reserve Fund shall remain in the Fund. 19

(ii) 1. Within 15 days after the end of each calendar quarter, the 20
Department shall notify the Comptroller as to each final credit certificate issued during the 21
quarter: 22

A. the maximum credit amount stated in the initial tax credit 23
certificate for the investment; and 24

B. the final certified credit amount for the investment. 25

2. On notification that an investment has been certified, the 26
Comptroller shall transfer an amount equal to the credit amount stated in the initial tax 27
credit certificate for the investment from the Reserve Fund to the General Fund.] 28

5–2705. 29

(A) THERE IS A BIOTECHNOLOGY INVESTMENT INCENTIVE GRANT 30
PROGRAM FUND. 31

(B) THE DEPARTMENT SHALL ADMINISTER THE FUND. 32
SENATE BILL 247 11

(C) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 1
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2

(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 3
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 4

(D) THE FUND CONSISTS OF: 5

(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 6

(2) ANY GRANT AMOU NT THAT IS REVOKED U NDER THIS SUBTITLE ; 7
AND 8

(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 9
THE BENEFIT OF THE FUND. 10

(E) THE FUND MAY BE USED ONLY FOR GRANTS PROVIDED UNDER THIS 11
SUBTITLE. 12

(F) (1) THE STATE TREASURER SHALL INVEST THE MONEY OF THE FUND 13
IN THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 14

(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITED TO 15
THE GENERAL FUND OF THE STATE. 16

(G) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 17
WITH THE STATE BUDGET. 18

(H) (1) FOR EACH FISCAL YEAR, THE GOVERNOR SHALL INCLUDE IN THE 19
ANNUAL BUDGET BILL AN APPROPRIATION OF $10,000,000 TO THE FUND. 20

(2) NOTWITHSTANDING THE PROVISIONS OF § 7–213 OF THE STATE 21
FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR MAY NOT REDU CE AN 22
APPROPRIATION TO THE FUND IN THE STATE BUDGET AS APPRO VED BY THE 23
GENERAL ASSEMBLY. 24

5–2706. 25

[(f)] (A) [(1)] The [credit claimed under this section ] GRANT PROVIDED 26
UNDER THIS SUBTITLE shall be recaptured as provided in [paragraph (2) of this 27
subsection] SUBSECTION (B) OF THIS SECTION if, within 2 years [from the close of the 28
taxable year for which the credit is claimed] AFTER THE GRANT WAS DISBURSED TO THE 29
QUALIFIED INVESTOR: 30
12 SENATE BILL 247

[(i)] (1) the qualified investor sells, transfers, or otherwise 1
disposes of the ownership interest in the qualified Maryland biotechnology company that 2
gave rise to the [credit] GRANT; or 3

[(ii)] (2) the qualified Maryland biotechnology company that gave 4
rise to the [credit] GRANT ceases operating as an active business with its headquarters 5
and base of operations in the State. 6

[(2)] (B) The amount required to be recaptured under this [subsection] 7
SECTION is the product of multiplying: 8

[(i)] (1) the total am ount of the [credit claimed ] DISBURSED 9
GRANT or, in the case of an event described in [paragraph (1)(i) of this subsection ] 10
SUBSECTION (A)(1) OF THIS SECTION , the portion of the [credit] DISBURSED GRANT 11
attributable to the ownership interest disposed of; and 12

[(ii)] (2) [1.] (I) 100%, if the event requiring recapture of the 13
[credit occurs during the taxable year for which the tax credit is claimed ] DISBURSED 14
GRANT OCCURS IN THE SAME FISCAL YEAR THAT THE GRANT WAS DISBURSED; 15

[2.] (II) 67%, if the event requiring recapture of the [credit 16
occurs during the first year after the close of the taxable year for which the tax credit is 17
claimed] DISBURSED GRANT OCCU RS IN THE FISCAL YEA R AFTER THE GRANT WA S 18
DISBURSED; or 19

[3.] (III) 33%, if the event requiring recapture of the [credit 20
occurs more than 1 year but not more than 2 years after the close of the taxable year for 21
which the tax credit is claimed ] DISBURSED GRANT OCCURS IN THE SECOND FIS CAL 22
YEAR AFTER THE GRANT WAS DISBURSED. 23

(C) IF A COMPANY RECEIVES AN INVESTMENT AND FA ILS TO SATISFY THE 24
REQUIREMENTS FOR A QUALIFIED MARYLAND BIOTECHNOLOGY COMPANY WITHIN 25
2 MONTHS OF THE RECEIPT OF THE INVESTMENT, THE DEPARTMENT SHALL REVOKE 26
100% OF THE DISBURSED GRANT AMOUNT. 27

[(3)] (D) (1) The qualified investor that [claimed the credit ] HAS A 28
DISBURSED GRANT THAT IS RECAPTURED UNDER THIS SECTION shall pay the 29
RECAPTURED amount to [be recaptured as determined under paragraph (2) of this 30
subsection as taxes payable to the State for the taxable year in which the event requiring 31
recapture of the credit occurs ] THE DEPARTMENT BY THE DAT E SET BY THE 32
DEPARTMENT. 33

SENATE BILL 247 13

(2) THE DEPARTMENT SHALL DEPO SIT THE RECAPTURED A MOUNT 1
INTO THE FUND. 2

5–2707. 3

[(g)] (A) [(1)] The Department may revoke its initial [or final] ELIGIBILITY 4
certification OR AWARD of an approved [credit] GRANT under this [section] SUBTITLE if 5
any representation in connection with the application for the certification is determined by 6
the Department to have been false when made. 7

[(2)] (B) The revocation may be in full or in part as the Department may 8
determine and, subject to [paragraph (3) of this subsection ] SUBSECTION (C) OF THIS 9
SECTION, shall be communicated to the qualified investor [and the Comptroller]. 10

[(3)] (C) The qualified investor shall have an opportunity to appeal any 11
revocation to the Department [prior to notification of the Comptroller]. 12

[(4) The Comptroller may make an assessment against the qualified 13
investor to recapture an y amount of tax credit that the qualified investor has already 14
claimed.] 15

5–2708. 16

[(h)] In accordance with § 2.5 –109 of [the Economic Development Article ] THIS 17
ARTICLE, the Department shall report on the initial [tax credit ] ELIGIBILITY GRANT 18
certificates awarded for the calendar year and the qualified Maryland biotechnology 19
companies that received an investment for which an initial [tax credit ] ELIGIBILITY 20
GRANT certificate was awarded. 21

5–2709. 22

[(i)] The Department [and the Comptroller jointly] shall adopt regulations to carry 23
out the provisions of this section and to specify criteria and procedures for application for, 24
approval of, and monitoring continuing eligibility for the [tax credit under this section ] 25
PROGRAM. 26

6–1001. 27

(a) In this subtitle the following words have the meanings indicated. 28

(b) “Level 1 opportunity zone enhancement” means an enhanced tax credit OR 29
GRANT under the Program for which a qualified opportunity zone business or qualified 30
opportunity fund is eligible if: 31

(1) the following information is provided to the Department: 32
14 SENATE BILL 247

(i) the date of the qualified opportunity fund’s investment in the 1
qualified opportunity zone business and the amount of the investment; 2

(ii) the total project or business investment, including any leverage; 3

(iii) the address and census tract of the qualified opportunity zone 4
business and the qualified opportunity fund; 5

(iv) the North American Industrial Classification System Code for 6
the qualified opportunity zone business; 7

(v) an impact report, including both qualitative and quantitative 8
data on the investment and, as applicable, its progress toward: 9

1. creating and retaining jobs; 10

2. promoting entrepreneurship, including among 11
women– and minority–owned businesses; 12

3. providing affordable housing; 13

4. creating access to healthy food; 14

5. promoting environmental sustainability; and 15

6. benefiting the communities in the opportunity zone in a 16
manner not otherwise specified in this item; and 17

(vi) unless an applicant provides an affidavit to the Department 18
along with the application that the qualified opportunity zone business property is 19
unoccupied, will be demolished within 1 year of the date of the application, and will remain 20
unoccupied until th e demolition is complete, with respect to qualified opportunity zone 21
business property that is an affected property required to be registered with the 22
Department of the Environment under § 6–811 of the Environment Article: 23

1. proof of registration wit h the Department of the 24
Environment; 25

2. if the property contains at least one residential rental unit, 26
proof of lead inspections conducted in accordance with §§ 6 –815 and 6 –819 of the 27
Environment Article; 28

3. if the property is an owner –occupied r esidential rental 29
property: 30

SENATE BILL 247 15

A. proof that visual exterior or interior painted surfaces are 1
free of chipping, flaking, or peeling lead–based paint; and 2

B. a copy of passing test results for lead–contaminated dust; 3
and 4

4. verification that, for the substantial improvement of the 5
property performed in accordance with § 1400Z–2(d)(2)(D)(ii) of the Internal Revenue Code, 6
replacement doors and windows are free of lead–based paint; and 7

(vii) any other information requested by the Department th at meets 8
the transparency goals of the Program; and 9

(2) for a qualified opportunity zone business located in an opportunity zone 10
in a county with a minimum wage that exceeds the State minimum wage, the qualified 11
opportunity zone business pays to each employee wages that exceed the greater of: 12

(i) 120% of the State minimum wage; or 13

(ii) 120% of the county minimum wage. 14

(c) “Level 2 opportunity zone enhancement” means an enhanced tax credit OR 15
GRANT under the Program for which a qualified opportu nity zone business or qualified 16
opportunity fund is eligible if: 17

(1) the requirements for a Level 1 opportunity zone enhancement are met; 18

(2) (i) accountability to residents of the communities in the opportunity 19
zone is maintained through their representation on any governing board or advisory board 20
of the qualified opportunity zone business; or 21

(ii) a community benefits agreement is negotiated and agreed to by 22
community groups or strategic industry partnerships, as defined under § 11 –701 of the 23
Labor and Employment Article, in the opportunity zone and the qualified opportunity fund 24
that specifies a range of community benefits that the fund agrees to provide as part of the 25
development project, including workforce development or local hiring requirements; and 26

(3) (i) for a qualified opportunity zone business located entirely within 27
an opportunity zone in a municipal corporation, the municipal corporation, by resolution or 28
by letter, delivered to the Department by the municipal corporation’s authorized designee, 29
approves the provision of the enhanced tax credits OR GRANTS under the Program within 30
the municipal corporation; or 31

(ii) for a qualified opportunity zone business in an opportunity zone 32
that is not located entirely within a municipal cor poration, the county, by resolution or by 33
letter, delivered to the Department by the county’s authorized designee, approves the 34
provision of the enhanced tax credits OR GRANTS under the Program within the county. 35
16 SENATE BILL 247

(d) “Opportunity zone” means an area that has been designated as a qualified 1
opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code. 2

(e) “Program” means the Opportunity Zone Enhancement Program in the 3
Department established under § 6 –1002 of this subtitle that allows enhance d tax credits 4
OR GRANTS under: 5

(1) § 6–304 of this title (Job Creation); 6

(2) § 6–403 of this title (One Maryland economic development); 7

(3) § 10 –702 of the Tax – General Article (wages paid in an enterprise 8
zone); 9

(4) [§ 10 –725 of the Tax – General Article ] TITLE 5, SUBTITLE 27 OF 10
THIS ARTICLE (biotechnology investment incentive); 11

(5) § 10 –733 of the Tax – General Article (cybersecurity investment 12
incentive); and 13

(6) § 10–741 of the Tax – General Article (More Jobs for Marylanders). 14

6–1006. 15

(a) In this section, “investment”, “qualified investor”, and “qualified Maryland 16
biotechnology company” have the meanings stated in [§ 10 –725 of the Tax – General 17
Article] § 5–2701 OF THIS ARTICLE. 18

(b) For a qualified opportunity fund that is a q ualified investor in a qualified 19
Maryland biotechnology company under [§ 10–725 of the Tax – General Article] TITLE 5, 20
SUBTITLE 27 OF THIS ARTICLE, if the qualified Maryland biotechnology company, on or 21
after March 1, 2018, is newly established in or expands into an opportunity zone: 22

(1) the Level 1 opportunity zone enhancement is 65% of the investment in 23
a qualified Maryland biotechnology company in any county, not to exceed $575,000; and 24

(2) the Level 2 opportunity zone enhancement is 75% of the investment in 25
the qualified Maryland biotechnology company in any county, not to exceed $750,000. 26

(c) The enhanced [tax credit ] GRANT percentages and maximums authorized 27
under subsection (b) of this section are in substitution for and not in addition t o the 28
percentages and maximums under [§ 10–725(d) of the Tax – General Article] TITLE 5, 29
SUBTITLE 27 OF THIS ARTICLE. 30

Article – Tax – General 31
SENATE BILL 247 17

10–207. 1

(a) To the extent included in federal adjusted gross income, the amounts under 2
this section are subtracted from the federal adjusted gross income of a resident to determine 3
Maryland adjusted gross income. 4

(RR) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES 5
THE AMOUNT OF A GRAN T RECEIVED FROM THE BIOTECHNOLOGY INVESTMENT 6
INCENTIVE GRANT PROGRAM UNDER TITLE 5, SUBTITLE 27 OF THE ECONOMIC 7
DEVELOPMENT ARTICLE. 8

10–307. 9

(a) To the extent included in federal taxable income, the amounts under this 10
section are subtracted from the federal taxable income of a corporation to determine 11
Maryland modified income. 12

(H) THE SUBTRACTION UNDER SUBSECTION (A) OF THIS SECTION INCLUDES 13
THE AMOUNT OF A GRAN T RECEIVED FROM THE BIOTECHNOLOGY INVESTMENT 14
INCENTIVE GRANT PROGRAM UNDER TITLE 5, SUBTITLE 27 OF THE ECONOMIC 15
DEVELOPMENT ARTICLE. 16

10–725. 17

[(j) If a company receives an investment under subsection (a)(7)(ii) of this section 18
and fails to satisfy the requirements for a qualified Maryland biotechnology company 19
within 2 months, the Department shall revoke any final tax credit certificates that have 20
been issued and recapture any tax credits already claimed by the qualified investor.] 21

10–804. 22

(j) (1) Except as otherwise provided in this subsection, a taxpayer claiming 23
any of the following tax credits shall submit a claim for the credit by electronic means as 24
required by the Comptroller by regulation: 25

(i) the Job Creation Tax Credit, as provided under Title 6, Subtitle 26
2 of the Economic Development Article; 27

(ii) the One Maryland Tax Credit, as provided under Title 6, Subtitle 28
4 of the Economic Development Article; 29

(iii) [the Biotechnology Investment Incentive Tax Credit, as provided 30
under § 10–725 of this title; 31

18 SENATE BILL 247

(iv)] the Enterprise Zone Income Tax Credit, as provided under § 1
10–702 of this title; and 2

[(v)] (IV) any other tax credit specified by the Comptroller through 3
regulation. 4

SECTION 3. AND BE IT FURTHER ENACTED, That: 5

(a) The provisions of § 10–725 of the Tax – General Article, as that section was in 6
effect before the effective date of this Act, shall continue to apply to t ax credit certificates 7
issued under that section before the effective date of this Act. 8

(b) Title 5, Subtitle 27 of the Economic Development Article, as enacted by 9
Sections 1 and 2 of this Act, shall apply to certificates issued on or after the effective date 10
of this Act. 11

SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2026. 13

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.