Economic Development - Income Tax Benefit Transfer Program - Establishment

HB 35 establishes an Income Tax Benefit Transfer Program allowing eligible Maryland technology companies with unused tax benefits (such as net operating loss deductions or tax credits) to transfer those benefits to other businesses. To qualify, a tech company must have a minimum number of full-time employees with health benefits, be tax-compliant, and operate in a sector approved by the Maryland Economic Development Commission. The Department of Commerce, with the Comptroller, will administer the program, requiring annual recommendations for eligible technology sectors. Transferred benefits help eligible tech companies fund operations within Maryland, directly affecting qualifying tech firms and recipient businesses.