One of the incentives offered by the State of Maryland to encourage new industry to locate in a designated Enterprise Zone or have existing
industry expand there is a real property tax credit. The Department of Assessments and Taxation certifies the assessment and the amount of property tax
credit is an actual reduction in the amount of taxes which would have been due on the increased value or assessment of property where capital investments
have been made or where new employees have been hired. Generally, the amount of this special tax credit shall be 80 percent of the "eligible assessment"
in each of the first 5 taxable years; 70 percent in the 6th taxable year; 60 percent in the 7th taxable year; 50 percent in the 8th taxable year; 40
percent in the 9th taxable year; and 30 percent in the 10th taxable year following the calendar year in which the property first becomes a "qualified"
property. This property tax credit is administered jointly by the local Enterprise Zone administrator and the Maryland Department of Assessments and
Taxation.
|