Income Tax – Angel Investor Tax Credit for Investments in Emergent Technology

HB 1128 creates a state income tax credit for individuals or entities investing in Maryland-based companies developing emergent technologies like artificial intelligence, quantum computing, or cybersecurity. To qualify, investors must contribute at least $25,000 before July 1, 2029, in exchange for equity (not debt), and the company must meet specific criteria for "emergent technology" development. The credit is funded through a dedicated Angel Investor Tax Credit Reserve Fund, which earns interest and is managed by the Department of Commerce. This policy directly affects early-stage tech investors and qualifying Maryland companies seeking capital to grow.