Maryland Cybersecurity Investment Incentive Tax Credit Investor Application Window Now Open
Baltimore, Maryland ∙ September 4, 2018
Beginning today, Maryland Department of Commerce is accepting applications from investors interesting in qualifying to receive a Cybersecurity Investment Incentive Tax Credit (CIITC). If qualified, an investor may receive 33% of the amount of the investment (up to $250,000 per fiscal year) as a refundable credit against Maryland state income tax. In order to qualify, investors must submit an application showing, among other things, that the investment is to be made in a Qualified Maryland Cybersecurity Company (QMCC).
To become a QMCC, the investment target must file its own application with MDOC, to show that it is Maryland-based and focused on developing a "cybersecurity technology," defined as "products or goods intended to detect or prevent activity intended to result in unauthorized access to, exfiltration of, manipulation of, or impairment to the integrity, confidentiality, or availability of an information system or information stored on or transiting an information system." Md. TAX-GENERAL Code Ann. § 10-733(a)(4). MDOC issued $2,740,790 in CIITCs between 2014 and 2017. For more information, check out the MDOC's CIITC website.
If you need assistance with evaluating this tax credit opportunity, or completing your application as an investor or QMCC, the Van de Verg Law Office stands ready to help. Call us on (410) 622-3878 or schedule a free consultation.